Kirkland Lake Gold (TSX: KL) was at one point not too long ago the largest constituent holding of the GDXJ, comprising more than 6% of the "junior" gold miner ETF. At last check KL is down to being a 4.5% weighting in the GDXJ even though KL's share price is now back above the level at which it closed on the day (February 27th) news of the GDXJ rebalance (which included KL's weighting being reduced by more than any other constituent) began to leak out:
KL.TO (Daily)
KL has continued to exhibit impressive relative strength while putting in place a solid double-bottom near the C$8.70 level in the last few months. Despite all the GDXJ fears a move over C$10.70 over the coming weeks could lead to another 15-20% of upside.
Last week Kirkland Lake announced a ~15.2 million share buyback in a strong vote of confidence in the value of its shares: Kirkland Lake Gold Announces Normal Course Issuer Bid
Judging by the 'tails' on Thursday and Friday's candlesticks (an indication buyers took advantage of dips below the C$10.00 level) that buyback may already be in action.
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