""Insiders are buying of shares of Barrick Gold (NYSE:ABX) hand over fist, according to SEDAR filings posted at CanadianInsider.com. It is often said that when insiders of a company sell shares, it can usually be for just about any reason, whether it's to diversify an investment portfolio, raise cash for a major life expense like a wedding or a divorce, etc. But when multiple insiders of a company are buying stock, is usually means one thing: They think the stock is undervalued and will rise in price.
That is exactly what I think is happening at Barrick Gold. Here's a list of recent insider transactions:
On Dec. 5, Steven J. Shapiro bought 10,000 shares at $11.56 in the public market, for a total value of $115,600. On Dec. 9, John Lawson Thornton, chairman of the board, bought more than 400,000 shares at $12.01 per share, worth just under $500,000. On Dec. 5, Joseph Brett Harvey, a director, bought 8,325 shares at $11.99 a share, worth just under $100,000. On Nov. 10, Kevin Paul Michal Dushnisky, co-[resident, bought 15,000 shares at $13.50 worth $202,500. On Nov. 6, Kevin James Thomson, senior VP of strategic matters, bough 15,301 shares at $13.19, worth $201,820.
http://seekingalpha.com/article/...-shares-of-barrick-gold-should-you
Summary
Barrick Gold insiders are buying shares hand over fist as the stock price is at its lowest point in two decades. The stock is being weighed down by the company's high debt load and a lower gold price. However, Barrick owns several outstanding gold assets such as the Goldstrike, Cortez, and Pueblo Viejo mines; I also like several of the company's development assets. I think shares of Barrick provide investors with an excellent long-term buying opportunity as a result.
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