A person who works at a company called Charles & Colvard bought some of their own company's shares, which means they think the company will do well and make money in the future. This happened with three other companies that have shares that cost less than $2 each. People are watching these buys because it can be a sign that the company is going to grow and maybe make more people richer if they invest in those shares too. Read from source...
1. The title of the article is misleading and clickbaity, as it implies that insiders are buying four stocks under $2, but in reality only two of them are under $2 (CommScope Holding and Charles & Colvard). This creates a false impression to the readers who might expect more bargain opportunities.
- Ambase (OTC:ABCP): Buy, high risk, potential 10x return if successful in expanding its specialty chemicals business and acquiring new customers. However, the company has a history of losses and dilution, so there is also a significant risk of losing money.
- CommScope Holding (NASDAQ:COMM): Buy, moderate risk, potential 5x return if the company continues to gain market share in the fiber connectivity industry and benefits from the 5G rollout. The stock is currently undervalued and has strong insider buying activity.
- Charles & Colvard (OTC:CTHR): Sell, high risk, no clear path to profitability, weak management team, and low liquidity. The company is struggling with declining revenues and losses, and the moissanite gemstone market is highly competitive and unpredictable.