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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Newmont Corporation (NGT)
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Lumine Group Inc. (LMN)
Q: I have a 4% exposure to the materials sector, and roughly 23% exposure to technology. I have been considering initiating a position in Newmont Corporation, as I feel the precious metals sector will continue to show strength over the next few years, and my portfolio would likely benefit from the standpoint of improved diversification. I currently have a position of 2% in each of Lumine Group and Shopify. I like both of these companies, but my circumstances require me to part with one position in order to start another.
Would you consider a position in NGT to have better prospects than either LMN or SHOP, or would I be better off staying with what I have, and attempting to raise cash over the next several months to initiate a position in NGT?
Would you consider a position in NGT to have better prospects than either LMN or SHOP, or would I be better off staying with what I have, and attempting to raise cash over the next several months to initiate a position in NGT?
5i Research Answer:
Keep in mind we can't personally direct responses. But, if one is looking at fundamental growth, LMN and SHOP we think have far more potential. Of course, shares do not always reflect this. In a big gold sector rally, NGT will likely do better. But of course the opposite is true in a tech rally. NGT is cheaper on a valuation basis, but it really only hasn't started to move until recently, with gold hitting new highs. We can't say really if NGT is going to do better; there are too many unknowns. But we do like the gold sector, and think for us adding NGT over time to improve diversification would make more sense that selling a tech name for a gold name.