As I do every month or so, I will now update readers on the most recent and notable insider buying transactions in the gold mining sector. This is public information that is available on SEDAR in Canada and SEC Form 4's in the U.S.
Currently, my Gold Bull Portfolio contains several positions that have witnessed insider buying at some point in the past 3-12 months. This is one strategy I've used that has helped my portfolio outperform the VanEck gold miners index (GDX) and the junior miners index (GDXJ). As of writing, the portfolio has now gained 35.88% YTD, compared to a 8.39% gain in the Philly Gold & Silver Index (PHLX), and an 11.04% gain in the Van Eck gold miners index (GDX), with the GDX trading at $23.22 per share, starting the year just under $21.
I view insider buying (when CEOs, CFOs and other executives, members of the board buy stock of their company) as a positive sign. To me, it shows that insiders are putting their money where their mouths are, and they are bullish on their company's shares and believe the stock price will rise. Typically, when an insider sells stock, there could be many reasons unrelated to whether or not they are bearish on the stock (they could just be looking to diversify holdings or raising cash for personal reasons, for example). But they are buying, they are bullish.
As stated in the past, this is just one piece of information I use when deciding on whether or not to make an investment in a gold stock. The quality of the deposit or mine, strength of the management team and exploration upside are more important factors to consider. However, I still think insider buying is worth tracking, as I've noticed, with several past investments coming from ideas after I discovered the heavy insider buying. Examples include big winners such as True Gold and Avnel Gold, which were both bought out at large premiums.
Currently, my Gold Bull Portfolio contains several positions that have witnessed insider buying at some point in the past 3-12 months. This is one strategy I've used that has helped my portfolio outperform the VanEck gold miners index (GDX) and the junior miners index (GDXJ). As of writing, the portfolio has now gained 35.88% YTD, compared to a 8.39% gain in the Philly Gold & Silver Index (PHLX), and an 11.04% gain in the Van Eck gold miners index (GDX), with the GDX trading at $23.22 per share, starting the year just under $21.
I view insider buying (when CEOs, CFOs and other executives, members of the board buy stock of their company) as a positive sign. To me, it shows that insiders are putting their money where their mouths are, and they are bullish on their company's shares and believe the stock price will rise. Typically, when an insider sells stock, there could be many reasons unrelated to whether or not they are bearish on the stock (they could just be looking to diversify holdings or raising cash for personal reasons, for example). But they are buying, they are bullish.
As stated in the past, this is just one piece of information I use when deciding on whether or not to make an investment in a gold stock. The quality of the deposit or mine, strength of the management team and exploration upside are more important factors to consider. However, I still think insider buying is worth tracking, as I've noticed, with several past investments coming from ideas after I discovered the heavy insider buying. Examples include big winners such as True Gold and Avnel Gold, which were both bought out at large premiums.
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