While most investors are failing to notice that the insider selling in the large cap stocks such as those in the S&P 500 and Dow Jones Industrials has been near the heaviest in history, there has been consistent and heavy insider buying in the Canadian mining shares. We suggest paying attention to the insiders-the most informed of all investors!

It is a “do as I do, not as I say” scenario. As our principal focus is the analysis of Canadian mining companies, a key component of our analysis is how much of their own companies’ shares the officers and directors own. We have little interest in companies that do not have large insider share ownership of their companies’ shares. The following companies have noteworthy insider purchases. We find that large insider ownership of a company’s shares is an indication that the primary focus of the management is the price appreciation of the company’s shares.

“NIOGOLD MINING“ symbol “NOX” on TSX, .38 cents US symbol NOXGF, the company’s properties are located in the Abitibi district of Quebec which has an eighty year history of gold production. Today the region continues to be one of the most productive gold mining areas in North America. Insider ownership at Niogold is large and insider buying is very heavy. We wrote a research report on NIOGOLD when it was at .21 cents. Two months later, Osisko Gold Royalties bought a 20% interest in NIOGOLD at .35 cents. Investment by management has been consistent with no selling. NIOGOLD”S Gold resources are now at 2,100,000 ounces.

“YORBEAU RESOURCES” symbol “YRB” on TSX .12 cents, US symbol YRBAF, Quebec exploration company in the Abitibi being consistently bought by officers and directors, solid buying continues, YORBEAU’S officers, directors and “friendlies” now own approximately 47% to 53% of the outstanding shares. When a European institution recently sold 25 million shares, we noted the fact that a Yorbeau insider purchased the entire position! The company also has other private investors holding large positions in Yorbeau.

“CARTIER RESOURCES” “ECR” on TSX.V .10 cents, US symbol ECRFF is another mining exploration company also in the Abitibi region, Insider activity? We have noted that in the past, the CEO bought 100,000 ECR shares at the .40 cent price level and higher. In April and May 2015, the CEO purchased another 529,500 shares at an average of .10 cents. ECR is being overlooked with four active projects that merit close attention. The insider purchases at Cartier are among some of the largest that we have seen recently in many stocks.

Final thought
Readers should find it interesting that while some people are selling their gold mining shares, the more informed insiders are taking advantage of the “sales” going on in their companies’ stocks and buying those same shares.