We’ve noted that the buyer’s strike in small junior explorers, developers and miners continued into the first week of October. Super-negative liquidity has clobbered many of the companies we track, even some of the most promising of explorers on our radar screen. However, the recent sharply lower prices have stimulated insider activity in some of the companies, such as in the Vulture Bargain Candidate of Interest below.
AsGolden Predator (TSX: GPD.T or GPRXF)shares plunged in September and October along with most of the juniors, from the C $1.20s to as low as 62-cents, GPD.T insidersBill Sheriff(Chariman and CEO) andJohn Legg(President) added shares in the open market from 64-cents to $1.00.
Apparently the company execs believed it was a good time to add to their respective stakes in the gold explorer with one of the largest, if not The largest land position in the Yukon. Golden Predator recentlyannounced favorable drill resultsfrom the Bear Paw zone of the Clear Creek project, with all eleven holes finding the “good stuff.”
According to documents filed in Canada and picked up by INK Research (CanadianInsider.com), from September 21 to October 4 Mr. Sheriff added 135,000 more GPD shares to his stake at prices from 64-cents to a Canadian Loonie. In addition, on August 12, the Chairman and CEO Sheriff also exercised 712,000 warrant shares at a reported 80-cents a copy. On October 5, as panic gripped the small junior mining space in spades, GPD President Mr. John Legg stepped up to buy 10,000 shares at a reported 72.3-cents each.
Insider info courtesy of Ink Research (CanadianInsider.com). See:https://www.canadianinsider.com/coReport/allTransactions.php?ticker=gpd
Shares of Golden Predator briefly touched 62-cents on Tuesday, October 4, before a quick snapback rally ensued. GPD.T closed Friday, October 7, at
.78, down very sharply from the $1.20s at the beginning of September. In the 1-hour period Volume Candle chart just below we can see that the cascade lower in price for GPD was on relatively lower volume, hinting at more of a buyer's strike than a shareholder exodus - something we are particularly interested in here at Got Gold Report.
(GPD.TO Volume Candle chart, 3-month, 1-hour periods. Larger volume periods are reflected by oversized volume bars and candles and vice versa. Time is variable on the lower scale. The GPD price performance for the period is added at bottom. If the image is too small click on it for a larger version.)
Apparently Mr. Legg and especially Mr. Sheriff believed that the share price had been driven too low by a panicky market as evidenced by the activity reported above.
Insiders sell shares of their own companies for a variety of reasons, including to pay taxes, to buy something, for college tuition for their children, to make donations, and of course, if they believe the near to mid-term future for their company is less than robust. Insiders buy shares of their own companies using their own hard-earned after-tax money for only one very important reason. They buy shares when they think the market price is too low and is likely to advance materially in the future. It goes without saying that when insiders buy, and buy in size, it is a clear and compelling vote of confidence by that individual.
Insider buying alone is not a sufficient reason to take a new position in any particular issue, but it certainly does add to our favorable impression of the company. It’s nice to know that the management of the company is aligning themselves with shareholders in a material and very public way.
Happy Thanksgiving to our friends in Canada.
Disclosure: Golden Predator is aVulture Bargain Candidate of Interest (VBCI). Members of the GGR team are actively accumulating and hold long positions in GPD.T or GPRXF.