Globe says director Estey buying New Gold stock

2009-06-08 05:55 ET - In the News

The Globe and Mail reports in its Saturday, June 6, edition that New Gold insider and director James Estey has been buying stock in the company. The Globe's Ted Dixon writes in the Who Is Buying And Selling column that even though he has seen some profit-taking among familiar gold names (he does not name the companies where insiders have been selling), his insider gold sentiment indicator remains upbeat with a reading of 120 per cent. This means there are 1.2 gold miners with buy-only insider filings, for every gold stock with sell-only filings. New Gold recently completed a merger with Western Goldfields. On May 19, after shareholders gave the deal the nod, Mr. Estey bought 100,000 shares at $2.43. On June 2, after the courts approved the deal, he bought 100,000 shares at $3.34. This is a sign of confidence for New Gold's postmerger prospects, says Mr. Dixon. Goldfield stock gave back eight cents to close Friday on the Toronto Stock Exchange at $3. The stock has a one-year range of 94 cents to $8.65. The Globe's Shirley Won wrote in the Number Cruncher column on March 5 that she expected New Gold stock, among other gold shares, to do well. New Gold equity was then worth $2.05.