VIRGINIA HILLS OIL CORP VFGGF

RE:why so many insider buying just few months ago??

[inviolablspirit]

Back in September/October insiders obviously believed all was going well.  In a news release in June they had announced a share buy back and along with other shareholders believed this was a good time to buy too.  Along with purchasing 500 000 shares as part of a larger planned share buy back of buying back 20% or 20 million shares, the management also bought shares for themselves in the open market.  However,  "The Company’s production for the quarter was adversely affected by a major facility turnaround (required 17 days of downtime; 307 boe per day lost production over the quarter) and by the conversion of seven producing oil wells to water injection (approximately 260 boe per day lost production over the quarter)".  

If you did your due diligence and contacted the company then you would have learned that they stopped the share buy back at 500 000 shares and had no plans to buy back any more at that time.  This was an indication to me that something was wrong and they were  possibly having to burn through cash or needed the cash on hand to fix some problems.  Another indication was there wasn't anymore insider buying after October 3rd.  You add to the fact that the stock was still on a continued downtrend, all signs pointed to another drop in the price.  But considering were the stock had been in the past and where is was now, for many investors it just seemed like a great price to buy more or at the vey least hold on to your loses for a turnaround.  And even through I was able to read all the signs I just couldn't resist the speculative buying opportunity hoping things had turned around.  I gambled and lost, just as many did and I'm not happy with myself because I'm usually a far more disciplined investor.  For me it's punishment for being stupid.  For others it can be a very expensive lesson to learn when it comes to speculative stocks or just learning when to cut your loses and preserve your capital so that you have enough money to fight again another day and put it on another stock to make back your money.  

So unless you truly believe the stock will turn around and you've done enough due diligence to lead you to those conclusions then hold on to the stock, but if you don't and there's no indication of a turnaround in the near future then you sell to preserve capital before it falls further.  If you're drawing a line in the sand and saying that you'll sell if it hits $0.15 than you should sell now instead of waiting for that to occur.  Drawing a line and waiting to hit that line is the worse thing you can do.  Either you have confidence in the company and management or you don't.