Green Organic Dutchman Holdings (TGOD) CEO Purchases Company Stock

Benjamin A. Smith

Although it’s been a tough go for Green Organic Dutchman Holdings Ltd. (TSE:TGOD) (OTCMKTS:TGODF) (FRA:O1GA) in recent times, company insiders are doing their part to inject a little confidence. New disclosures reveal material insider buying occurring at the top of the food chain—and not of the grant of options variety.

According to Canadian Insider and corroborated by SEDICEO Brian Athaide recently made material TGOD purchases in the public markets. A total of 106,850 shares was purchased at prices between $3.15-3.17, according to public filings. That brings Mr. Athaide’s total disclosed holdings to 416,850 shares—the bulk of which were acquired at the company’s IPO listing date at $3.65/share.

While insider purchases are a relatively poor predictor of future price success, it should provide an immeasurable boost of confidence for investors. Not only are Mr. Athaide’s purchases derived from personal funds, they’ve come in a climate of dreary sector sentiment. Furthermore, Mr. Athaide appears unconcerned of the potential effects of approximately 100 million locked-up shares becoming free-trading on November 2nd. Although that influence is likely immaterial now, his action provides concrete evidence that TGOD directors indeed view it that way.

Commenting on the share purchase, TGOD’s top executive provided additional reasoning into his purchasing decision. It appears a mixture of attractive price points, along with material approaching catalysts, have prompted Mr. Athaide to act. Here’s what he had to say:

“I believe current market prices are an excellent entry point given I remain confident that our facilities construction plans are on track as is our Canadian Brand launch for the Canadian medical market in January and recreational markets in the summer.  I believe our unique and scaled premium organic proposition, which we know resonated with consumers, will result in disproportional value creation rewarding our shareholders in the next year and beyond.”

While directors generally believe in their own company’s value proposition, they don’t purchase company stock indiscriminately without a purpose. Whether you’re an insider, retail, or institutional investor, nobody puts personal funds on the line without believing ROI is worth the risk. Thus, Mr. Athaide’s material purchase in another anecdote that some very smart people believe Green Organic Dutchman stock is close to bottom.

We now await for the ultimate arbiter of Brian Athaide’s action—the equity markets—to render an decision in due course.

Green Organic Dutchman is currently down $0.12 to $3.18/share (↓3.64%)

Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
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