Petrominerales Ltd PMGLF

Insider buys 65,500 shares today

[bladerummer]

That a major chunk of change that makes the confidence level go up.

[bladerummer]

Too bad Petromiserales shares are falling every day, kinda wanted to see it recover at least to $10 by this year. Oh well.

[maxleverage]

That is PMG buying back its stock under their NCIB.   They bought back around 35- 50 k shares per day through out September.  Looks like the buying is continuing in October.

[soberinvestor]

Sorry, I don't see it that way but I don't also see much downside for the foreseeable future. It’ll probably hover between 7.5-8.5 for a while. Best way is to buy now and sell a call against it. If you do that properly you can collect about 30 percent/year considering call + dividend providing that it does what I said and dividend is not cut. There’s always possibility though that if they

[maxleverage]

I personally don't agree with selling a call against a stock which hopefully will have explosive upside (when they find more oil).  I would think most investors who didn't believe in the potential for significant upside would not own the stock in the first place.   Isn't this stock a little too risky if all you are looking for is a 6% yield?   Why would

[soberinvestor]

I'm not looking for 6% but about 30% as I said. April 8 call gives me 14% alone for 7 monts. Let say another 5 monts call will give another 10% and divy 6% that's total of 30% in 12 monts. Of course providing that nothing drastic happens. I assume it'll hover 7.5 - 8.5 and even 7-9 suits me. I didn't put my shirt on it though yet. If it breaks out let say 9 level I'll collect

[maxleverage]

You also run the risk of missing a lot of upside if this company is bought out.   I understanding what you are saying, but I believe it is better to sell calls when volatile stocks have had a good run up / appear to be peaking, and not when they are trashed in the toilette.   I realize we have a difference of opinion on the short / medium term outlook for PMG.  I am

[soberinvestor]

Appreciate your input. It feels like this stock is in accumulation process. Some insiders may even be slipping through the cracks buying since insider info tells you only gross volume and PMG seems to be reporting only once in a while for certain period. I may have to review my position, thanks.

[maxleverage]

PMG will report its entire month of September 2012 purchases in the next couple of days (i.e. they only report once a month).   Unfortunately, my bet is that none of the management bought any shares and that it is only the company.  

[soberinvestor]

You're right, last time they reported on the 5th of next month entire previous monthly trades. They might be awarded so called alternate reporting rules that entities are allowed to report the monthly transactions till the 10th day of next month.

[maxleverage]

PMG just filed their September report.  They bought back 1.9 M shares in the month of September - almost 100,000 shares every single trading day.   Including the 661 K shares bought in August, the most recent round of buy backs is slightly over 2.5 milllion shares.  

[soberinvestor]

2.5 mln shares is like 2.8% of total issued shares. It means then that we, just holding it, made 2.8% return in 2 monts that is about 16% annually not counting dividend and future capital gains. This is awesome stock. I would put my house on if it was based in Canada. It’s just political uncertainties keep me from doing that. I’m still sticking to stock/call agenda but this time I have to add that

[pokerbeeks]

They are maxing out what they can legally buy under the NCIB rules.  I really like this play.  As I'm expecting to be in this for several years I'm hopng this stays low for a while allowing them to continue to retire shares at these depressed prices.  The risk of this strategy is it increases leverage but I feel they wouldn't be doing all this buying if they had any

[soberinvestor]

PMG sits on a lot of cash so I think there's no worry about excessive leverage. Buy for 8 and resell for 18 could be their strategy because once good NR hits the market SP may triple in a matter of weeks. After all it used to be 40 dollar stock not that long ago. Book value as per last Q is about $11.6, 160 mln cash on hand and good cash flow.