E Pershing Gold – Steady Insider Buying And A Catalyst For Revaluation

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

There are thousands of listed publicly traded companies in the United States alone.Globally there are many multiples of that.

If you are an investor interested in doing some stock research finding a starting point amongst all of these companies can be overwhelming. Further complicating things is the fact that a lot of these companies are not worth risking your hard earned money on in the first place.

I have a very simple approach that helps me both shorten the list of companies to consider for investment and also lowers my risk of making a mistake by owning something of very low quality.

My approach involves focusing exclusively on companies that are either owned by world class investors or are seeing significant insider buying.

By doing so I’m restricting my entire pool of investment choices to only those that have the stamp of approval of a either a proven world class investor or company insiders who are the people with the best possible information on the company.

I strongly believe that this approach both reduces my risk of making mistakes and helps me find better opportunities.

Pershing Gold – Very Steady Insider Buying

Source: Yahoo Finance

Pershing Gold gets into my pool of potential investments through insider buying. An unusually large dollar amount of insider buying. The amount of their own money that insiders at Pershing Gold (PGLC) have been spending on shares is definitely enough to perk a person’s interest.

Over the past six months alone more than 7.8 million shares have been acquired by insiders at prices in and around $4 per share. That is over $30 million dollars which is much larger amount than I typically see at a smaller cap company.

(Click on image to enlarge)

Source: Yahoo Finance

You can see a couple of insider sales in the six month period above as well, but the buying dates back for more than 18 months and dwarfs the sales in both dollar amount and regularity.

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Disclosure: I don’t own any shares of companies mentioned in this article.

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Intelligntinvestor 3 years ago Member's comment

In December 2016, NDEP (Nevada Division of Environmental Protection/Bureau of Mining Regulation and Reclamation Phase) issued the Reclamation Permit for Phase I expansion of the Relief Canyon Mine. Pershing Gold also has the approval from Bureau of Land Management for Relief Canyon Mine Expansion. Now, Pershing Gold has the permission to initiate the restart and expansion of Relief Canyon Mine. They are also working on air pollution control mechanisms. It shows that the company is progressing and investors seem happy about it (reflected in stock price).