If you own Barrick Stock...
January 28, 2008
– Comments (5) |
RELATED TICKERS: ABX
, AEM
This might be a terrific time to consider getting out of your position and into another gold company that is on better footing. Why the cause for concern? There is no more compelling narrative within the financial world than the moves insiders make with their company shares. They can spin their words to shareholders however they like, but you can't put a positive spin on this:
Insider transactions filed on Jan 14, 2008
Source: SEDI
Barrick Gold Corp. director Howard Beck sold 50,000 company shares at prices ranging from $47.74 to $48.55 on Jan. 7, 2008, bringing his total company holdings to 139,144 company shares.
Barrick executive vice president of exploration and corporate development Alexander Davidson exercised 50,000 options for company shares at $29.60 each on Jan. 8, 2008. He sold all of these shares the same day at prices from $50 to $50.02, bringing his total company holdings to zero.
Barrick executive vice president and general council Patrick Garver exercised 7,803 options for company shares at US$30.41 each on Jan. 8, 2008. He sold all of these shares the same day at prices from US$50.18 to US$50.21, bringing his total company holdings to zero.
Barrick executive vice president and chief operating officer Peter Kinver, exercised 100,000 options for company shares at $28.57 each on Jan. 11, 2008. He sold all of these shares the same day at prices from $52 to $52.21., bringing his total company holdings to zero.
Recommendation: Sell Barrick immediately. Buy Yamana Gold (AU) or Agnico Eagle (AEM) in its stead. Both of these stocks are very well regarded by unaffiliated precious metlas analysts, and both are poised for consderable organic growth, especially in a rising price environment. Barrick looks solid on paper, and does produce huge quantities of gold, but the company must (in my opinion) have some negative news coming out for the directors to behave in this way.
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