We have told you for a very long time that insiders refuse to buy their own stock in the open market. This tells us that insiders do not feel there is much value at these levels. For one down and out area, that may be changing.
Southern Copper (SCCO) Chairman bought 500,000 shares at $28.90…$14.4 million.
Chesapeake Energy (CHK) Director bought 500,000 shares at $23.32…$11.7 million.
U.S. Steel (X) CEO and CFO bought 54,851 shares at $35.20-37.60…$2 million.
AK Steel (AKS) CEO,EVP and DIRECTOR bought 190,000 shares at $6.04-6.18…$1.2 million.
Just because insiders buy does not mean the stocks will go up. We just find it interesting that these down and out commodity-type areas are now getting decent buying after recent drops…and it is notable that two Steel companies are seeing buying at the same time. We will be looking out to see if more show up…and of course, we will be watching to see if accumulation shows up.