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Insiders Are Buying Guyana Goldfields

July 05, 2014 | About:

maarnio

0 followers

One gold company has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

- The stock is purchased by three or more insiders within one month.

- The stock is sold by no insiders in the month of intensive purchasing.

- At least two purchasers increase their holdings by more than 10%.

Guyana Goldfields (TSX:GUY) is engaged in the acquisition, exploration, evaluation, and development of gold deposits in Guyana.

Insider Buying During the Last 30 Days

Here is a table of Guyana Goldfields' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Jean-Pierre Chauvin Director June 27 60,000 Yes 60,000 shares from 0 to 60,000
Rene Marion Director June 26 54,000 Yes 54,000 shares from 0 to 54,000
The Baupost Group 10% Owner June 24 4,728,000 Yes 29,606,669
shares
+19.0%

There have been 4,842,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a private placement.

Insider Buying by Calendar Month

Here is a table of Guyana Goldfields' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 4,842,000 0
May 2014 0 0
April 2014 0 0
March 2014 0 10,000
February 2014 0 62,000
January 2014 0 15,000
December 2013 0 0
November 2013 0 0
October 2013 0 120,000
September 2013 0 20,000
August 2013 20,000 0
July 2013 0 0
June 2013 40,000 0
May 2013 0 0
April 2013 82,000 0
March 2013 0 0
February 2013 6,490,000 0
January 2013 10,000 0

There have been 11,484,000 shares purchased and there have been 227,000 shares sold by insiders since January 2013. The month of June has seen all of the insider buying this year.

Financials

Guyana Goldfields reported the fiscal 2014 second-quarter, which ended April 30, financial results on June 12 with the following highlights:

Revenue $0
Net loss $1.1 million
Cash $77.1 million

Guyana Goldfields closed a $41.5 million private placement on June 27.

Outlook

Guyana Goldfields is currently fully funded to production start.

Upcoming Milestones

Guyana Goldfields is targeting mid-2015 production start.

398827-14042149773808165-Markus-Aarnio.p

(Source: Investor presentation)

Competition

Guyana Goldfields' competitors with operations in South America include Golden Star Resources (GSS), and IAMGOLD (IAG). Here is a table comparing these companies.

Company GUYFF GSS IAG
Market Cap: 306.82M 153.03M 1.55B
Qtrly Rev Growth (yoy): N/A -0.36 -0.09
Revenue: N/A 419.89M 1.12B
Gross Margin: N/A 0.12 0.25
EBITDA: -8.51M -323.72M 94.00M
Operating Margin: N/A -0.90 -0.64
Net Income: -13.36M -296.26M -839.70M
EPS: -0.11 -1.15 -2.23
PEG (5 yr expected): N/A -1.95 -2.31
P/S: N/A 0.35 1.36
P/B: 0.98 2.89 0.54

Guyana Goldfields doesn't have any revenues yet.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
GSS 37,000 0
IAG 0 0

Only Guyana Goldfields has seen intensive insider buying during the last 30 days.

398827-14042183774535944-Markus-Aarnio.p

Conclusion

There have been three different insiders buying Guyana Goldfields and there have not been any insiders selling Guyana Goldfields during the last 30 days. All three of these insiders increased their holdings by more than 10% each.

398827-1404218516789685-Markus-Aarnio.pn

The three insiders purchased their shares at $1.85. I believe Guyana Goldfields could be a good pick below $1.85 based on the intensive insider buying.

398827-14042186301468852-Markus-Aarnio.p

Disclosure: The author is long TSX:GUY, IAG, GSS.

About the author:

maarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

Rating: 0.0/5 (0 votes)

Comments

goforit
Goforit premium member - 2 weeks ago

I believe that the $1.85 private placement purchases and your suggested entry point are in Canadian dollars. Your suggested entry point is $1.74 in US dollars, significantly below the latest $2.60 closing price of the stock.

maarnio
Maarnio - 2 weeks ago

Goforit,

$1.85 is in Canadian dollars:

http://www.guygold.com/s/NewsDetails.asp?id=%20122582

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