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Since my December 21, 2012 article, dealing with two commodity stocks, the stocks that I featured in the article have performed as follows:

CompanyPrice 12/20Price 1/24Change
CCJ$20.71$21.64+4.5%
LAM.TO$0.83$1.03+24.1%

In this article, I will feature three commodity stocks that have seen intensive insider buying during the last 30 days.

Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10 percent.

1. ARC Resources (OTCPK:AETUF) is a mid-sized dividend paying oil and gas company with near-term growth prospects, and is located in Calgary, Alberta.

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Insider buying

  • Jay Billesberger purchased 1,102 shares on December 31 pursuant to a purchase/ownership plan. Jay Billesberger currently controls 4,534 shares or less than 0.1% of the company. Jay Billesberger is Vice President, Information Technology of ARC Resources.
  • Wayne Lentz purchased 4,164 shares on December 31 pursuant to a purchase/ownership plan. Wayne Lentz currently controls 88,119 shares or less than 0.1% of the company. Wayne Lentz is Vice President, Strategy and Business Development of ARC Resources.
  • Allan Roberts purchased 750 shares on December 31 pursuant to a purchase/ownership plan. Allan Roberts currently controls 750 shares or less than 0.1% of the company. Allan Roberts is Vice President, Production of ARC Resources.
  • Neil Groeneveld purchased 1,504 shares on December 31 pursuant to a purchase/ownership plan. Neil Groeneveld currently controls 25,473 shares or less than 0.1% of the company. Neil Groeneveld is Vice President, Geosciences and Exploration of ARC Resources.
  • P. Van R. Dafoe purchased 1,699 shares on December 31 pursuant to a purchase/ownership plan. P. Van R. Dafoe currently controls 37,356 shares or less than 0.1% of the company. Mr. Dafoe is Senior Vice President, Finance of ARC Resources.
  • Terrence Gill purchased 3,175 shares on December 31 pursuant to a purchase/ownership plan. Terrence Gill currently controls 26,806 shares or less than 0.1% of the company. Terrence Gill is Senior Vice President, Corporate Services of ARC Resources.
  • Cameron Kramer purchased 3,000 shares on December 31 pursuant to a purchase/ownership plan. Cameron Kramer currently controls 3,000 shares or less than 0.1% of the company. Cameron Kramer is Senior Vice President and Chief Operating Officer of ARC Resources.
  • Myron Stadnyk purchased 2,982 shares on December 31 pursuant to a purchase/ownership plan. Myron Stadnyk currently controls 196,041 shares or less than 0.1% of the company. Myron Stadnyk is President and Chief Executive Officer of ARC Resources.

Financials

The company reported the third-quarter financial results with the following highlights:

Funds from operations$164.9 million
Net loss$24.3 million
Net debt$691.0 million
Production89,511 bopd

Outlook

ARC expects full year 2012 average production to be in the range of 91,000 to 94,000 boe per day. ARC expects to exit 2013 with production of approximately 100,000 boe per day, but will demonstrate only modest full year average production growth of approximately three per cent in 2013 as much of the growth will come on during the fourth quarter of 2013. Significant production growth is expected to continue in 2014 upon commissioning of the Parkland/Tower gas processing and liquids handling facility. With the recently completed debt issuance and equity offering, ARC is well positioned with a strong balance sheet including low debt levels, working capital and significant available credit capacity to fund the 2013 capital program.

My analysis

The stock has a $37.5 price target from the Point and Figure chart. There have been eight different insiders buying and there have not been any insiders selling the shares during the past 30 days. The company is paying $0.10 monthly dividends which gives the stock a 5% dividend yield. The company's proved plus probable reserves are 572 mmboe. I have a cautiously bullish bias for the stock based on the technical and fundamental picture.

2. Veresen (OTC:FCGYF) owns and operates energy infrastructure assets across North America within three principal business segments - pipeline transportation, natural gas liquids and power. Each of these businesses plays an important role in meeting North American energy requirements and is positioned for growth. Greenfield projects currently being developed include LNG and pipeline facilities on the U.S. west coast, Alberta-based ethane and NGL extraction facilities, repowering and expansion opportunities at the California power facilities and Nova Scotia underground natural gas storage and pipeline facilities.

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Insider buys

  • Maureen Howe purchased 5,000 shares on January 18, 2013 and currently holds 5,000 shares or less than 0.1% of the company. Maureen Howe serves as a director of the company.
  • Henry Sykes purchased 2,000 shares on January 18, 2013 and currently holds 10,000 shares or less than 0.1% of the company. Henry Sykes serves as a director of the company.
  • Stephen White purchased 280 shares on December 24, 2012 pursuant to a purchase/ownership plan. Stephen White currently holds 37,952 shares or less than 0.1% of the company.

Financials

The company reported the third-quarter financial results on November 6 with the following highlights:

Net income$11.4 million
Cash$39.3 million
Debt$1.3 billion

Outlook

For 2012, Veresen expects distributable cash to be in the range of $1.03 to $1.12 per share. The midpoint of $1.08 per share is unchanged from previous guidance issued August 8, 2012, reflecting the growing portion of distributable cash derived from Veresen's contracted asset base.

My analysis

The stock has a $16.25 price target from the Point and Figure chart. There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. The company pays a $1.00 annualized dividend per share, which gives the stock a 8% dividend yield. I have a cautiously bullish bias for the stock currently based on the technical and fundamental picture.

3. SunCoke Energy Partners, L.P. (NYSE:SXCP) is a publicly traded master limited partnership, which manufactures metallurgical coke used in the blast furnace production of steel.

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Insider buys

Financials

The company reported the pro forma financial results for the first nine months ending September 30, 2012 with the following highlights:

Revenue$554.0 million
Net income$57.0 million
Cash$128.7 million
Debt$150.0 million
Net tangible book value$17.88 per share

Outlook

It is the company's intent to distribute at least the minimum quarterly distribution of $0.41 per unit ($1.65 per unit on an annualized basis).

The company estimates that coke production for the fourth quarter of 2012 will be approximately 443,000 tons, including 153,000 tons at Middletown and 290,000 tons at Haverhill, reflecting capacity utilization of 107.0%, versus approximately 452,000 tons in the third quarter of 2012 including 154,000 tons at Middletown and 298,000 tons at Haverhill, reflecting capacity utilization of 109.0%.

My analysis

The stock started trading on January 18 after the initial public offering. There have been three insider buy transactions and there have not been any insider sell transactions since the IPO. The company's net tangible book value is $17.88 per share and the expected dividend yield is 8.7%. I have a cautiously bullish bias for the stock currently based on the attractive dividend yield and the intensive insider buying.

Source: 3 Commodity Stocks With Recent Intensive Insider Buying