How to Turn $12,147 into $65,320 in 30 Days
Unico, Inc. [[UNCO.OB]] shares surged more than 285 percent after director and corporate secretary C. Wayne Hartle purchased 3,958,799 shares for a total of $12,147 between May 1, 2009 and May 8, 2009. Now, those same shares are worth some $65,320 on the open market as investors applauded the move and sent shares higher.
Insider buying transactions are often thought of as an important indicator of confidence in the company. After all, management knows more than investors in most cases, and therefore should be able to make more informed decisions. However, it is important for investors to look at the size of the transaction as well when determining its relevance and importance.
The purchase comes shortly after the company reported that the company intends to add an additional step to the processing of gold (Au) and silver (Ag) at the mill and processing facility at the Deer Trail Mine in Marysvale, Utah. Once completed, the company expects to begin extracting silver and gold using an alternative processing method.
C. Wayne Hartle commented in a press release, “I feel confident that the planned next steps at the Deer Trail Mine will move the project forward, and I am happy to take this opportunity to acquire additional shares of common stock at this time.”
In the end, all insider transactions are commendable as any stakes by management isn’t to be taken lightly. Meanwhile, this transaction demonstrates confidence in the company’s planned next steps at the Deer Trail Mine. However, a 285 percent reaction to a $12,147 transaction may have been too much too fast, and investors should be cautious going forward.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com