Uncommon Cents Sells ASA Gold Shares for $3.92 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Fool
- Share Reduction: Uncommon Cents Investing disclosed in an SEC filing that it sold 77,370 shares of ASA Gold and Precious Metals Limited in Q4 for an estimated $3.92 million, resulting in a reduced stake valued at $26.28 million, reflecting a risk management strategy rather than a loss of conviction.
- Position Proportion: After the sale, ASA still represents 6.36% of Uncommon Cents' portfolio, indicating continued confidence in the precious metals market despite the partial sale aimed at rebalancing investment risk.
- Market Performance: ASA's stock price surged 189.9% over the past year, currently priced at $63.48, significantly outperforming the S&P 500's roughly 17% gain, highlighting strong performance in the precious metals sector and investor confidence.
- Investment Strategy: As a closed-end investment company focused on precious metals and mining equities, ASA employs a bottom-up analysis approach to provide investors with access to global precious metals markets, and the share reduction reflects a disciplined investment strategy rather than a shift in long-term belief.
Analyst Views on ASA
About ASA
ASA Gold and Precious Metals Limited is a non-diversified, closed-end investment company. The Company's investment objective is long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals. The Company invests approximately 80% of its total assets in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals; held as bullion or other direct forms of gold, silver, platinum or other precious minerals; in instruments representing interests in gold, silver, platinum or other precious minerals, and/or in securities of investment companies, including exchange traded funds, or other securities. The Company’s investment adviser is Merk Investments LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
