On Tuesday, November 19, Janice M. Quigley, Vice President at Omnitek Engineering Corp. (OTC:OMTK), purchased 10,000 shares of common stock at $0.525 each, with the use of a stock option for a total transaction worth $5,250. Ms. Quigley now holds a total of 175,000 shares of common stock under his direct control, for a total value of $455,000 (as of November 19, 2013 03:22 PM ET).
The timing of the purchase is not accidental since stock face value has been on a steep decline since November 12th. So far, the stock price has lost a total of $0.34 from a high of $2.9, representing a 12% loss on face value. At around 11 AM ET, the trading volume of the stock reached 61,000 shares of common stock and face value responded positively.
The upswing comes as good news for management, since last Thursday’s quarterly report announced the impact of lower foreign sales due, in part, to the appreciation of the US dollar, as well as inventory build up to support the anticipated ramp up of domestic diesel engine conversion-to-natural gas kit sales in the current fourth quarter, was unable to revert the trend.
“Notwithstanding the impact of the aforementioned items impacting the quarter and nine-month period, sales in the current fourth quarter are expected to begin to reflect long-awaited domestic contributions. Our optimism is supported by expressing strong interest from large domestic trucking fleet operators and a commitment to convert from diesel fuel to natural gas engines,” said Werner Funk, president and chief executive officer of the Omnitek Engineering Corporation.
What is more important, the announcement of John M. Palumbo to serve on the company’s board of directors and as chairman of its audit committee did not have a positive impact on stock value either. That same day, October 31st, the stock tumbled $0.10, leaving clear evidence of the lack of confidence on the firm’s prospects from the market. In line, it is worth noting that Ms. Quigley’s transaction is the first registered under her name and the fourth insider purchase registered by Engineering Corp. this year.