Insider Activity Report: ASA Gold & Precious Metals (ASA)

Alexander Merk, COO at ASA Gold & Precious Metals (ASA), recently bought 25,549 shares. The buy increased his stake by 26 percent, and came to a total cost of $388,161.

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  • Two company directors bought shares at the same time, with purchases totaling about $40,000. Going further back, company insiders have been regular and steady buyers of shares over the last year, with no insider sales. An asset manager with a major stake has also been buying more.

    In total, ASA insiders own 0.7 percent of shares.

    Shares of the gold mining investment company are flat over the past year. Precious metals prices have picked up in recent months, with gold setting a new dollar high recently.

    ASA’s revenues have surged 110 percent in the past year, but the company isn’t yet profitable.

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  • Action to take: Gold prices are expected to trend higher, which should be bullish for miners and ASA’s investments in them. That could lead to better share price appreciation in the coming year.

    ASA shares currently pay a modest 0.1 percent dividend.

    For traders, the May $15 calls are an at-the-money trade. Last going for about $1.40, they could see mid-double-digit returns or better should gold prices continue higher this year. Returns may fare even better on a price spike, which would send miners soaring.


    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 companies mentioned in this article.

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