Simon Collins Spends CA$438k On Tantalex Lithium Resources Stock

Investors who take an interest in Tantalex Lithium Resources Corp. (CSE:TTX) should definitely note that the Independent Director, Simon Collins, recently paid CA$0.025 per share to buy CA$438k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Our free stock report includes 6 warning signs investors should be aware of before investing in Tantalex Lithium Resources. Read for free now.

Tantalex Lithium Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Simon Collins was not the only time they bought Tantalex Lithium Resources shares this year. Earlier in the year, they paid CA$0.035 per share in a CA$684k purchase. That means that even when the share price was higher than CA$0.015 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Simon Collins was the only individual insider to buy shares in the last twelve months.

Simon Collins purchased 91.69m shares over the year. The average price per share was CA$0.033. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Tantalex Lithium Resources

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tantalex Lithium Resources insiders own about CA$2.0m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Tantalex Lithium Resources Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Tantalex Lithium Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 6 warning signs we've spotted with Tantalex Lithium Resources (including 5 which are a bit concerning).

But note: Tantalex Lithium Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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