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Amerigo Resources Ltd T.ARG

Alternate Symbol(s):  ARREF

Amerigo Resources Ltd. is a Canada-based copper producer. The Company owns a 100% interest in Minera Valle Central S.A. (MVC), a producer of copper concentrates. MVC, located in Chile, has a long-term contract with the El Teniente Division (DET) of Corporacion Nacional del Cobre de Chile (Codelco) to process fresh and historic tailings from El Teniente. The Company operates in one segment, the production of copper concentrates under a tolling agreement with DET.


TSX:ARG - Post by User

Post by StockpickerNYCon Jun 07, 2022 11:15am
212 Views
Post# 34737044

Mixed Signals

Mixed SignalsOne director is buying/holding big time.  Another director is leaking stock into the market.  Which one to believe?   In this case, I would tend to take this as a positive signal.  Here is why:

It appears that Ireland liquidated his fund but took a large chunk of his profits in Amerigo shares, that has to be a sign of strong support.  He likely is looking at his cash return on investment and with a rising dividend, Amerigo provides a really solid holding.   He also would probably be very receptive to the right offer at a good valuation as he has a history of quietly facilitating company.

In contrast, Luzich is probably leaking out stock because he needs to raise cash for other parts of his portfolio.  He probably has gotten hammered in tech stocks (he is a west coast guy after all) and needs to offset his losses.  If he really wanted to get out of the position, he would likely be hitting the market harder.

My conclusion is that these are positive signs.  Ireland likes what he is seeing and is making an aggressive bet on ARG.  That trumps Luzich who is leaking out small amount of stock but appears to be trying to save his position.     
 
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