RE: Insider SellingAfter re-reading my previous post, it became apparent that I only gave you one side of the coin. Here's the other side, and is why I'm not only sitting tight on my holdings, but carefully adding to them.
First... Regardless of what good reasons a few insiders had for selling ASD shares, I would have preferred that they were buyers.
"Hey, I'm holding my shares, I want you to do the same as a token of faith." But unfortunately, life isn't that simple. There will always be buyers and there will always be sellers; only time will tell who was right. I don't have any gripe with Len DeMelt. He sold some shares for whatever reason, which I'm sure had merit. I'm holding mine for my own set of reasons, which also have merit. Sometimes, that's a lonely road, but it's the only road I feel comfortable with. I really don't believe that Len sold shares because of inside info — there are heavy penalties for that kind of activity. Everyday, insiders are nailed to the wall for trading in advance of news. Besides ASD, Len DeMelt is an insider shareholder of Canadian Shield Resources Inc., Grenville Gold Corporation, Huntington Exploration Inc., Journey Resources Corp., Murgor Resources Inc., Intl PBX Ventures Ltd., SYMC Resources Limited, and Vena Resources Inc. If you were him, would
you jeopardize your fortune and freedom by making publicly reported trades based upon inside information? I don't think so. Neither does Len DeMelt. The trades I worry about are the ones I can't trace — those %$#@ anonymous trades — which could be from secret brokerage accounts at offshore banks. A quick 2-day "vacation" in the Bahamas or Cayman Islands is all that's necessary to set up a bunch of trades without having to use easily monitored email, phone or fax. Hey, for all we know, Osama bin Laden could be trading ASD. Well, he could. The point is, when you see an insider trade reported publicly, that's not a time to worry. It's when things get too quiet that you should begin to wonder.
Second... ASD is not a drug company hoping for approval of a new medication. ASD is not a services company, which can lose a big client...along with 20% of its business. ASD is not a manufacturer who has to worry about a competitor's new and improved product stealing their market share. ASD has one product — metal...and plenty of it. It's in the ground, it won't evaporate, it's value can be easily calculated...and the known quantity continues to grow. Unless a huge meteor destroys Pinaya next week, gold and copper will be smelted sometime late next year, of that you can be sure. It's money-in-the-bank, or pretty close to it.
Third... When buy recommendations began to roll in last year, they were based upon low-grade ore. Pinaya ore is still predominantly low-grade, but now there's much more of it. Find enough low-grade ore and you will make high-grade money. Last year, New York City's 25¢ parking meters generated revenues of $51 million. ASD will operate on the same principle: "From little pennies, big dollars grow." And only a fraction of the Pinaya property has been drilled to date. And if BHP Billiton or some other biggie makes a handsome offer for control of ASD, so much the better — you'll make your money quicker. Remember, regardless of insider sales, insiders still own plenty of stock. Profit for them is profit for us.
Finally... I hold in excess of one million ASD shares. Every 1¢ move gains or loses $10,000+ for me. A 4¢ drop would cost me $40,000+. I may be financially secure, but 40 grand is 40 grand! If I thought ASD would drop 4¢, you can be sure I'd be discreetly selling shares and buying them back 4¢ cheaper. And I wouldn't have made my previous post of a few hours ago. But I'm sitting tight. Indeed, ASD may drop 4¢, maybe more. But I've been there before — too smart for my own good. Selling out when things looked lousy, then kicking myself when I was proven wrong. Oh yes, those
"I once had X,XXX shares of XXX stock", and
"I coulda made $XX,XXX...if only I held it" made great stories at cocktail parties, but they didn't help my bank account one bit. My biggest profits were made by buying stock in companies with fundamentally sound profit potential, then waiting for the market to recognize it. I'm 70 years old (although I don't feel a day older than 69), and time is not as free a commodity as it once was. But I've learned that holding a stock for one year while I wiped my brow was a lot easier — and infinitely more profitable — than selling too soon and grinding my teeth for ten years.
"Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times, he will do better if he forgets about the stock market and pays attention to the operating results of his companies." — Benjamin Graham, The Intelligent Investor, p.109 —Staylorpi
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