S/L: Insiders Love This Penny Stock

April 30, 2021

The Insider Report

Trade Alert

I tend to stay away from penny stocks.

It’s not that I don’t like them, there just isn’t as much information available about the companies.

The only way to know what’s going on at these under-the-radar operations is to know someone on the inside.

Or… follow those insiders’ trades.

The company is GEE Group (JOB).

It is a staffing firm headquartered in Jacksonville, Florida with operations going back to 1893.

Last week, the company completed a secondary stock offering.

Not only did all of the shares sell, but he underwriter exercised in full its 15% over-allotment option to purchase an additional 12.5 million shares.

In other words, they liked the stock and want as much as they can buy.

The proceeds were used to pay off in full approximately $56 million in outstanding debt under its existing revolving credit loan.

So GEE Group’s balance sheet is healthy and the firm is in a much better position financially.

Of course, secondary offerings dilute current shareholders.

Since more shares now exist, each represents a smaller equity stake in the company.

So it is natural for the stock price to drop when the offering is completed.

But the extreme drop in Gee Group stock seems exaggerated.

And several insiders agree…

The CEO, CFO, and a high-level director all made large purchases in their personal accounts immediately after the stock offering was announced.

And all three of these insiders are first-time buyers.

At just $0.63 a share, it won’t take a huge move to generate a nice percentage return.

But the opposite is also true.

25 cents in either direction will definitely move the needle, so keep position sizing in mind and don’t get overextended.

This is a riskier stock due to its size, but the upside is substantial.

I believe the risk is worth the potential reward which is why I’m recommending it for the Insider Report.

Action to Take:  Buy GEE Group (JOB) stock at the market up to $0.75. Work an end-of-day stop at $0.50.

GEE Group does not have stock options.

If you have questions, feel free to shoot me an email: support@hubertsenters.com.

All the Best,

Ross Givens

Editor, The Insider Report