My rocketing ASX stock is up 28% in 12 days. Time to sell?
I recently checked my brokerage account and got a very pleasant surprise indeed. One of my ASX stocks has gained almost 30% in just 12 days.
Yes, this particular stock was going for $130.45 a share back on 30 July. Today, on 11 August, it is currently commanding a price tag of $167.14. That's a gain of 28.2%.
This high-flying rocket of a stock is none other than Newmont Corporation (ASX: NEM).
Newmont is the largest gold miner on the ASX. It is technically an American company, with the NEM shares that are listed on our local market being CHESS Depository Interests (CDIs). It graces our boards thanks to the blockbuster takeover deal that Newmont engineered back in2023 that saw it swallow up Newcrest Mining, which was previously our largest ASX gold stock.
I used to own Newcrest shares, and now, thanks to that deal, I am a proud Newmont shareholder. So, now that these Newmont shares have delivered a gain that a typical index fund or superannuation account might be expected to deliver over many years in just a few days, should I be considering a share sale?
When should we sell an ASX stock?
Before anyone sells an ASX stock, I think they need to ask themselves why they bought it in the first place. If it is because a company has a decades-long track record of delivering for its shareholders, then perhaps it should never be sold.
Newmont doesn't exactly have this, though, and it certainly isn't why I own this company. I bought Newcrest, and keep Newmont, mostly due to its vast gold reserves. According to its estimates, Newmont owns more than 100 million ounces in gold reserves in its mines, worth far more than its market capitalisation of US$123.5 billion.
I own this gold miner as part of my own portfolio insurance. It's my belief that gold has an inherent value, as well as defensive characteristics, that may protect my portfolio if there is a serious global financial crisis. I hope, and don't expect that to eventuate. However, I'm a believer in the maxim that we should 'hope for the best, but prepare for the worst' when it comes to our finances.
Gold, and by extension, gold miners, provide a level of diversification to my otherwise stock-heavy portfolio. So I am happy just to hold this company indefinitely. I am very happy to see it languish while my other stocks perform well. But if there is some kind of global economic crisis, I think having gold assets may just be advantageous.
Foolish takeaway
So no, I won't be selling my Newmont shares, despite their recent rocket ride. It pays to remember that, although the past few weeks have been kind to Newmont, the company had spent most of 2026 dropping in value before the end of July. If gold goes parabolic for some reason, and my Newmont shares, say, double in the next month or two, I might consider trimming my position. Otherwise, I am just happy to let this company play its role in my overall portfolio.
The post My rocketing ASX stock is up 28% in 12 days. Time to sell? appeared first on The Motley Fool Australia.
Motley Fool contributor Sebastian Bowen has positions in Newmont. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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