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Insiders are also doing some big buying in
Paramount Gold and Silver(PZG), an exploration stage mining company with projects in northern Nevada and Chihuahua, Mexico. Insiders are buying into some notable strength here since the stock is up 15.9% so far in 2012.
Paramount Gold and Silver has a market cap of $338 million and an enterprise value of $322 million. This stock trades at a premium valuation, with a price-to-book of 6.41. Its estimated growth rate for this year is 81%. This is a cash-rich company, since the total cash position on its balance sheet is $7.4 million and its total debt is zero.
A beneficial owner just
bought 1.17 million, or $2.4 million worth of stock, at $2.05 per share. The CEO also just
bought 50,000 shares, or $111,500 worth of stock, at $2.22 per share.
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From a technical perspective, PZG is currently trading right above its 50-day moving average and right below its 200-day moving average, which is neutral trendwise. This stock has been trading range bound for the past few months, between $2 to $2.15 on the downside and $2.60 to $2.79 on the upside. This stock is quickly moving within range of challenging the upper end of its recent range.
If you're bullish on PZG, then I would look for long-biased trades once this stock breaks back above its 200-day moving average of $2.59 a share with high volume. Look for volume on that move that's near or well above its three-month average action of about 1 million shares. It's worth mention that the last two trading sessions (both up days) have produced volume of 3.9 million and 1.98 million shares traded.
If we get that move soon, then look to add to any long positions once PZG takes out some near-term
overhead resistance at $2.79 to $2.83 with volume. Target a run back towards $3.06 to $3.23 a share, or possibly higher if the strong volume continues to show up and if PZG can sustain a trend above its 200-day.