Saba Capital Management, a major holder of ASA Gold and Precious Metals Limited (ASA), recently added 20,445 shares. The buy increased the fund’s stake by less than 1 percent, and came to a total cost of $313,298.
The fund was joined by the company COO, who bought over 10,000 shares in 3 separate transactions over 3 days last week. Those buys totaled over $150,000. There have been no sales by company insiders over the past two years.
Overall, ASA Gold insiders own 0.3 percent of the company, and institutions like Saba own 56 percent of shares.
The asset manager is up nearly 10 percent over the past year. That’s lagged the S&P 500 by about 5 points over the same period.
Its investments in precious metals have started to pay off in recent weeks as gold prices have moved back over $2,000 per ounce.
Revenues have soared nearly 100 percent over the last year, although the company isn’t currently profitable.
Action to take: Investors may like shares here, as a way to play to a further rise in gold and precious metals, as the company’s various investments give it some diversification. Shares also pay a 0.1 percent dividend.
For traders, options are limited. But the May 2024 $15 calls, last going for about $1.50, are currently just slightly in-the-money. They could see a mid-double-digit gain or better on a further rally in gold in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.