Turnarounds are definitely not for the fainthearted. They usually take much longer than anticipated. As a result, they wear out the majority of investors. Yukon-Nevada Gold Corp is a perfect example. I don’t know a single investor who is not sick and tired of this company and its management. And, this is for good reason – it has been nothing but torture holding this stock.
With that being said, while the past shareholders continue to wish the company the worst to confirm their sell decision, insiders are stepping in and buying shares. According to the press release from May 17, 2012, the executive management of the company participated in the private placement in the aggregate amount of $375,000. At this point, it is not known exactly who participated and how much money each of them put on the line because most of them did not file their purchases yet except Shaun Heinrichs, the company’s CFO.
According to CanadianInsider.com, Heinrichs put up $100,000 of his own money to buy shares of Yukon-Nevada for $0.23 per share.
This week we will probably see more insiders filing. I would like to see Baldock participate, too. We’ll find out soon.
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” Peter Lynch
Disclosure: Long Yukon-Nevada
