For the second weekend in a row, we have come across insider buying in a high-yielding stock. Last week we wrote about Algonquin Power & Utilities Corp. Today, we turn to Retrocom Mid-Market REIT which currently pays a 3.75-per-unit monthly distribution.
In August, CEO Richard Michaeloff bought 10,000 units at $4.45, which is very close to the one-year high. Generally, it is a positive sign to see insiders buy as a stock moves to the upside. Such activity can signal that the market is still undervaluing a company despite recent gains.
Other insiders at Retrocom were buying this summer as well. In June, director Mauro Pambianchi bought 15,000 units at $3.80. Last month, 10-per-cent holder Peter Bull bought 56,000 units (not shown on chart). The largest insider at Retrocom based on reported SEDI holdings is Toronto retail real estate developer Mitchell Goldhar.
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at www.inkresearch.com . Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities.