(Editors' Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.)
In this article, I will feature one gold stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
Belo Sun Mining Corp. (OTCPK:VNNHF), a mineral exploration company, engages in the exploration of gold properties located in Brazil.
Insider buying during the last 30 days
Here is a table of Belo Sun Mining's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Mark Eaton||CEO||Oct 7-28||603,000||5,943,500 shares||+11.3%|
|Mike Hoffman||VP||Oct 10||100,000||400,000 shares||+33.3%|
|Ian Pritchard||COO||Oct 9||11,000||308,740 shares||+3.7%|
There have been 714,000 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Belo Sun Mining's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 1,788,490 shares purchased and there have been zero shares sold by insiders during the past six months.
Belo Sun Mining reported the second-quarter financial results on August 13 with the following highlights:
|Net loss||$7.8 million|
Belo Sun's principal focus is the Volta Grande gold project. Belo Sun completed a preliminary feasibility study for the Volta Grande gold project on May 6, 2013. Belo Sun intends to complete a definitive feasibility study for the project in the fourth quarter of 2013.
Belo Sun's competitors in Brazil include Luna Gold Corp. (OTCQX:LGCUF), and Colossus Minerals (OTC:COLUF). Luna Gold is already producing gold and Colossus Minerals is expecting to reach production later this year.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Belo Sun has seen intensive insider buying during the past 30 days.
There have been three different insiders buying Belo Sun and there have not been any insiders selling Belo Sun during the past 30 days. Two of these three insiders increased their holdings by more than 10%.
Belo Sun's measured and indicated mineral resources are 5.1 million ounces of gold. There are eight analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $1.08.
Belo Sun intends to complete a definitive feasibility study for the Volta Grande gold project later this year. I believe the stock could be a good pick from the current price level based on the intensive insider buying.