NEM - Newmont: Why It Could Be A Great Time To Take Profits
2024-06-12 17:13:17 ET
Summary
- Since March this year when I published my bullish article on Newmont Corporation, the stock price has increased significantly, outperforming even the S&P 500.
- Q1 2024 earnings showed strong results with increasing adjusted EBITDA and great progress on cost savings and synergies.
- Yet, given the magnitude of the recent share price run-up and the fact that gold is trading close to all-time highs, the investment case has weakened.
- In my opinion, now is the right moment to take at least part of the profits home.
Mid-March this year, I wrote a very bullish article on Newmont Corporation ( NEM ) arguing that the investment case is attractive since it provides a defensive exposure that is correlated with gold dynamics in combination with a decent entry yield of 3%, where the underlying cash flows were subject to strong growth....
Newmont: Why It Could Be A Great Time To Take Profits