Kwing Chee Lam Is The Chairman of the Board of Golden Resources Development International Limited (HKG:677) And Just Spent HK$58k On Shares

Whilst it may not be a huge deal, we thought it was good to see that the Golden Resources Development International Limited (HKG:677) Chairman of the Board, Kwing Chee Lam, recently bought HK$58k worth of stock, for HK$0.58 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Golden Resources Development International

The Last 12 Months Of Insider Transactions At Golden Resources Development International

Earlier in the year, Chairman of the Board Kwing Chee Lam paid HK$0.57 per share in a HK$570k purchase. That implies that an insider found the current price of HK$0.59 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Golden Resources Development International insider decided to buy shares at close to current prices. Kwing Chee Lam was the only individual insider to buy during the last year. Notably Kwing Chee Lam was also the biggest seller.

Kwing Chee Lam purchased 4.00m shares over the year. The average price per share was HK$0.59. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Golden Resources Development International Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Golden Resources Development International shares, worth about HK$103m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Golden Resources Development International Tell Us?

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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Golden Resources Development International. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Golden Resources Development International you should be aware of, and 1 of them makes us a bit uncomfortable.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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