Gold is 2025’s best performer. UBS sees more upside
PORTLAND, ME—In a recent transaction filed with the Securities and Exchange Commission, Alexander Merk, the Chief Operating Officer of ASA Gold & Precious Metals Ltd (NYSE:ASA), purchased a significant number of shares in the company. On January 14, 2025, Merk acquired 29,700 shares at a weighted average purchase price of $21.9993 per share, amounting to a total investment of approximately $653,379.
The shares were bought in multiple transactions, with prices ranging from $21.98 to $22.00 per share. Following this acquisition, Merk holds a total of 273,057 shares directly. Additionally, there is an indirect holding of 13,355 shares under his spouse's name.
This transaction highlights Merk's increased stake in ASA Gold & Precious Metals Ltd, reflecting his confidence in the company's future prospects.
In other recent news, ASA Gold and Precious Metals Limited has adopted a limited-duration shareholder rights plan to safeguard shareholder interests and prevent unilateral control. This move comes amidst a governance dispute among its board members, involving the New Directors and the Legacy Directors, as revealed in a recent SEC filing. The company, demonstrating strong performance with a 29% year-to-date return and a modest P/E ratio of 4.3, faces potential control from Saba Capital Management, which currently holds approximately 17.18% of ASA's outstanding common shares. The rights plan, set to expire on December 20, 2024, aims to protect against any entity from gaining control without offering a premium deemed appropriate by the Board or a specially formed Rights Plan Committee. Tensions have escalated since Saba's proxy contest in early 2024 to influence the company's Board composition, resulting in legal action against the company and certain directors. Despite these developments, ASA emphasizes its openness to constructive engagement with Saba, provided it aligns with the company's investment focus in the precious metals sector. Investors are encouraged to keep an eye on the company's filings and announcements for further developments regarding this boardroom disagreement.
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