23.73 -1.2 (-5.04%) Buy

Search for alternative investments is on for KL investors as it underperforms

13 min read

KIRKLAND LAKE GOLD LTD. (Foreign) is a falling knife that can bleed you if you catch it on Friday. It delivered -5.04% to close at 23.73. It is currently trading +78% above it's 52 week low of 13.29 and is down only -5% from it's 52 week high.

[Themes containing KL]

Buy-and-Hold investors in KL experienced a maximum drawdown of -15.47% over the last three months. It surged by +30.38% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +13.67%.


KL has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 26 Oct, 2017 to 13 Dec, 2018. Over the last 1 year and 4 months, KL outperformed the SP500 index on 51% days.

KL was profitable on 52% days in the last three months. During this time, it delivered on average +0.45% per day. It delivered it's best daily return of +9.36%, during this period, on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 11 profitable days, which started on 28 Nov, 2018 and went on till 13 Dec, 2018. This bullish trend returned +26.74% to investors.

The last 12 months saw KL's investors making profits in 9 months and incurring losses in 3 months. During the last year, KL delivered profits in more months than SP500 index. KL significantly outperformed SP500 index in Jun 2018, when it returned +14.97% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. KL had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

You can only become truly accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing, and then do them so well that people can't take their eyes off you.
-- Maya Angelou

KL is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant fall in KL's volatility from 17 Sep, 2018 to 27 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that KL has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

KL has more chance of extreme outcomes than the SP500 index. Therefore, KL must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than KL.

Based on your interest in KL you may find it interesting to know that DLPH, TAL and EVBG have all performed similar to KL and qualify as alternative investment candidates that must be evaluated for diversification.

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