One of the companies I think could take advantage of what may be a bull market in commodities that is forming, Cenovus Energy (TSX:CVE)(NYSE:CVE) has granted investors with another bullish buy signal recently. In December, the company’s board chair invested nearly $350,000 of his own money in this great Canadian energy player.
This substantial purchase should not be taken lightly. Investments in the energy sector continue to be pushed aside by many investors in favor of other sector-specific opportunities with better growth potential. Despite some pretty strong indicators showing Cenovus and its peers could perform well over the medium-term, this appears to be the current market consensus.
Seeing an insider purchase a large chunk of stock at a time like this is telling. I think investors ought to consider companies that have management teams that are willing to put their money where their mouths are. Right now, Cenovus’ fundamentals, market position, and business model appear to be well-liked by the company’s management team, a good sign for investors in this stock.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest wisely, my friends.
