Stockchartoftheday February 19th 2024 – Stan Drunkenmiller Buys Newmont

In today’s chart of the day we look at Newmont mining. In his recent quarterly portfolio update Stan Drunkenmiller said he sold some of his Alphabet stock (GOOGL NASDAQ) and added to positions in Barrick Gold AND Newmont Mining. 

This could tell us that Drunkenmiller is starting to get bullish on precious metals as the federal reserve nears cutting rates this spring. As we pointed out in stockchartoftheday a few weeks ago gold stocks usually perform very well when rate cut cycles start. As we are a matter of months away from a new rate hike cycle someone like Drunkenmiller could be trying to anticipate the rate cut cycle knowing that gold and gold equities perform well.

As for the chart of Newmont I have enclosed a 5 years chart of Newmont. It has been on a wild roller coaster ride. Rallying from $30 to $80 then falling back to $33. What is interesting is Newmomth now is trading at the same price it was at in 2019 when gold was $1500 an ounce!!! Also Newmont’s revenues last year were about the same as they were in 2021 shen the stock was near $80 a share. It also pays a near 4.5 percent dividend.