eResearch Blog: Stock of the Week (September 4, 2007)
Inca Pacific Resources Inc. - Positive Insider Trading
Stock Symbol: TSX-V: IPR
Price (September 4): $1.07
52-Week High-Low: $2.07 (May) - $0.80 (March)
Initiating Report Price: $0.53 (May 10/05)
Initiating Report Target Price: $1.00
Update Report Price: $0.70 (February 28/06)
Update Report Target Price: $1.00
Hi-Lo Last Three Months: $1.99 - $0.89
Inca Pacific Resources has made considerable progress since our last research report. We are now in the throes of preparing an Update Report and will have a new Target Price and fresh opinion and recommendation for consideration.
The shares were essentially range-bound from September 2006 until April 2007 when they broke out on the upside. However, the positive share price performance was not accompanied by much increase in share trading volumes. As a result, the shares stalled through most of June until they fell off a cliff at the end of the month, only to rebound strongly at the beginning of July, before declining sharply in concert with the significant decline in the market generally.
Of particular note is the recent purchase by a senior officer of the Company of more than one million shares on August 29, 2007. That day, more than 2.5 million shares were traded. The 150-day average volume for the stock is less than 60,000 shares.
Another interesting recent shareholder disclosure is the four million share holding by a major investment fund transacted on June 8, 2007.
Significant insider trading is not a sure thing as an indicator of a stock’s upside potential, but it certainly aligns management’s interests with those of shareholders, and that is always a good thing.
Stock Symbol: TSX-V: IPR
Price (September 4): $1.07
52-Week High-Low: $2.07 (May) - $0.80 (March)
Initiating Report Price: $0.53 (May 10/05)
Initiating Report Target Price: $1.00
Update Report Price: $0.70 (February 28/06)
Update Report Target Price: $1.00
Hi-Lo Last Three Months: $1.99 - $0.89
Inca Pacific Resources has made considerable progress since our last research report. We are now in the throes of preparing an Update Report and will have a new Target Price and fresh opinion and recommendation for consideration.
The shares were essentially range-bound from September 2006 until April 2007 when they broke out on the upside. However, the positive share price performance was not accompanied by much increase in share trading volumes. As a result, the shares stalled through most of June until they fell off a cliff at the end of the month, only to rebound strongly at the beginning of July, before declining sharply in concert with the significant decline in the market generally.
Of particular note is the recent purchase by a senior officer of the Company of more than one million shares on August 29, 2007. That day, more than 2.5 million shares were traded. The 150-day average volume for the stock is less than 60,000 shares.
Another interesting recent shareholder disclosure is the four million share holding by a major investment fund transacted on June 8, 2007.
Significant insider trading is not a sure thing as an indicator of a stock’s upside potential, but it certainly aligns management’s interests with those of shareholders, and that is always a good thing.
posted by Bob Weir at
12:02 PM
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