It isn’t a coincidence that CEO’s and company officers seem to always buy and sell at opportune times. After all, the CEOs and CFOs of the companies we follow have access to significantly more information you could ever imagine. However, this doesn’t mean individual investors are left in the dark. Insider trading data is out there for all who want to use it.
For example, if insiders are buying shares in their own companies, they usually know something that normal investors do not. They might buy because they see great potential, a merger, acquisition, or simply because they think their stock is undervalued A great example of this would be United Continental Holdings when they announced that CEO Oscar Munoz had bought $1 million worth of the company’s stock. Similarly in February, JPMorganChase CEO Jamie Dimon bought $26 million worth of his company’s shares — and he’s seen a 20 percent return since then.
Recently, the CEO of Potash American Inc (OTC:PTAM) purchased a large number of shares of his company, totaling nearly 70% of all outstanding shares. A week later, the CEO again bought a large block of shares, totaling a staggering 80.92% in outstanding shares. Whats ever more telling is the price in which they were purchased, that of fair market value, not heavy discounted shares in a A-Transfer that is sometimes done.
As of March 31, 2019, the Company announced it has no warrants outstanding with no stock options outstanding. This allows the company to move with technical perimeters, unlike most OTC companies that are restricted based on the number of warrants, stock options outstanding, and toxic notes. PTAM has a clean balance sheet, which makes it able to trade freely.
Currently trading at roughly $0.03 per share, recent resistance levels have been broke on ITV points, allowing for significant room for price appreciation as company continues to roll out its business plans. Based on the technical ratings, PTAM is capable of entering a new trading channel near the previous $0.12 to $0.15 mark within 2019. As mentioned before, with the CEO owning over 80% of the common shares of the company, no outstanding stock options, no warrants due, new price highs might be witnessed due to the limited amount of stock left in the public float.