Insider buying refers to when insiders of a company, such as the management team or board of directors, purchase shares of company stock in the public market. There are many reasons why an insider might sell shares, but there is only one reason they are buying: they believe the stock is cheap and the price will rise.
…I feel miners are deeply undervalued and carry less overall risk as an investment compared to prior corrections.
- Gold miners remain enormously profitable at spot gold prices, with all-in costs averaging around $1,000-$1,100 per troy ounce [ozt] for most major producers, so margins remain strong ($600/ozt-$700/ozt).
- While mining shares have sold off quite a bit, profits are down slightly, but there is no reason to panic as the vast majority in this industry do not face bankruptcy risk unless gold falls by $500/oz or more.
- As a sector, the miners are in much better shape to withstand a further drop in gold prices compared to the sell-off in 2013….[as] the sector has $6 billion net debt compared to $32 billion debt in 2013, according to a recent study by Metals Focus.
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