Several Charles & Colvard executives, including its new CEO, have bought thousands of company shares, part of an effort to boost the stock price and avoid being delisted.
That move, coupled with Charles & Colvard's announcement last week that it plans to buy back 1 million shares, might work.
On Wednesday, the shares closed at $1.09, up 17 cents. That was the first time the stock has closed above $1 since July 2008.
Charles & Colvard shares began trading publicly in Nov. 1997. The stock surged above $25 in late 2005, but has fallen sharply since then.
The Morrisville company has reported that it expects to receive a notice of delisting from the Nasdaq on Dec. 2 if its stock doesn't get back above the required minimum price of $1.
The company's shares have suffered as sales of its man-made moissanite gems used in jewelry have slumped during the recession.
Corporate insiders buying stock can be a signal to other investors that they think the stock is undervalued and poised to rise.
On Tuesday Randy McCullough, who was named CEO last week, bought 25,000 shares at 83 cents to 90 cents each, according to filings with the Securities and Exchange Commission. Two directors, Charles Lein and Ollin Sykes, bought 6,000 and 3,500 shares each.
"We're trying to show we support the company and think there's a lot of potential," said chief financial officer Tim Krist. "We feel strongly that the company has a bright future.
"We're trying to do what we can to regain compliance" with the Nasdaq, Krist added.
Krist declined to comment on whether he or other executives also are buying shares. Any additional insider purchases will have to be disclosed with the SEC.
McCullough previously ran a jewelry store chain with 150 stores. As part of his compensation package as CEO, Charles & Colvard also awarded him an options grant to buy about 180,000 shares.
During a conference call last week to discuss the company's latest quarterly results, McCullough said that he is working on a strategy to boost moissanite sales.
"In my 36 years in the industry, I can't remember being more excited about the potential for a product," he said.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or 
