According to SEC Form 4 filings, USA Synthetic Fuel Corp (OTC:USFC) experienced a great deal of insider trading on November 18th and 19th. Individuals in top positions apparently regained their faith in company, as they rushed to acquire stock.
The details
Director Bradley J. Davis purchased 10,000 shares of common stock, through a series of transactions, at prices ranging from $1.2 to $1.5 per share. In total, Mr. Davis spent around $12,776 on the purchase, and brought his total position in the company up to 231,990 shares. This represents a total value of $347,985 at current share prices (at $1.5 per share, as of Oct. 20, 12:05 pm EST). Despite the insider trade, the stock is still trading rather near to its 52-week low of $0.13.
Chief Financial Officer of USA Synthetic Fuel Corp, Willard Daniel Dixon, was also involved in the insider trading, purchasing 8,105 shares of common stock on Oct. 18th. This brings the Officer’s holdings to 28,105 shares, valued at approximately $42,157. The transaction took place at a time when shares were trading between $1.70 and $1.75 per share, meaning Mr Dixon has already made a considerable loss with his acquisition.
The Executive Chairman, Hammond Harvey Graves, was a bit more conservative, yet also followed in his collegues footsteps, acquiring 6,366 shares of common stock, for around $13,499. The Chairman purchased these shares in three transactions, at values ranging from $1.65 to $2.50 per share, bring his total holdings to approximately $42,396,564 at current values. Graves is a huge shareholder, with 28,264,376 shares, and was surely not happy with the drop in prices following the insider trade. With shares now trading far behind their 52-week-high of $5 per share, insiders are trying their best to show confidence in the USA Synthetic Fuel Corp’s future.
The reasons
There is much speculation as to why the company saw such an increase in insider trading during these two days. The latest news to come from the company, was Lima Energy’s 10-year ultra clean synthetic crude contract, yet that was back in October. A subsidiary of USA Synthetic Fuel Corp was contracted to supply up to 80 million barrels of oil equivalent of its synthetic counterpart, Husky Energy’s Lima Refinery over a period of ten years. The only other positive news which might have inspired this insider activity, is the company’s earnings. The firm has finally posted positive results, and might be expecting to continue on its current upwards trajectory.
Disclosure: none
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