3 Stocks With Recent Intensive Insider Buying

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 |  Includes: AAU, HLSS, KMKGF
by: Markus Aarnio

Since my December 13, 2012, article titled "5 Stocks With Recent Intensive Insider Buying", the stocks that I featured have performed as follows:

Company Price 12/12 Price 2/22 Change
HTA $9.88 $11.33 +14.7%
WMC $20.66 $21.19 +0.53%
GLUU $2.46 $2.34 -4.9%
NTLS $13.36 $13.54 +1.3%
MBLX $1.69 $2.30 +36.1%
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In this article, I will feature three additional 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%.

1. Home Loan Servicing Solutions (NASDAQ:HLSS) engages in acquiring mortgage servicing assets, primarily subprime and Alt-A mortgage servicing rights and associated servicing advances.

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Insider buying by insider (last 30 days)

  • John Van Vlack purchased 4,000 shares on February 21, and currently holds 104,000 shares or 0.2% of the company. John Van Vlack has served as a director since October 2011 and was appointed President in March 2012.
  • Kerry Kennedy purchased 2,000 shares on February 14, and currently holds 3,590 shares or less than 0.1% of the company. Kerry Kennedy has served as a director since October 2011.
  • Robert McGinnis purchased 2,000 shares on February 12, and currently holds 11,000 shares or less than 0.1% of the company. Robert McGinnis has served as a director since October 2011.

Insider buying by calendar month

Here is a table of Home Loan Servicing Solutions' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 8,000 0
January 2013 0 0
December 2012 0 0
November 2012 5,500 0
October 2012 15,000 0
September 2012 0 0
August 2012 159,693 0
July 2012 10,000 0
June 2012 0 0
May 2012 8,775 0
April 2012 0 0
March 2012 762,785 0
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The month of February 2013 has seen the most insider buying since October 2012.

Financials

The company reported the full year 2012 financial results on February 7, with the following highlights:

Revenue $57.1 million
Net income $26.9 million
Net book value $15.76 per share
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Competition

Home Loan Servicing Solutions' competitors include FirstCity Financial Corp. (NASDAQ:FCFC) and Nationstar Mortgage Holdings (NYSE:NSM). Here is a table comparing these companies.

Company HLSS FCFC NSM Industry Average (Mortgage Investment)
Market Cap: 1.27B 103.87M 3.39B 1.66B
Employees: 14 276 2,599 4.86K
Qtrly Rev Growth (yoy): N/A -0.01 2.29 0.00
Revenue: 33.07M 56.52M 597.90M 9.58B
Gross Margin: 0.98 0.79 1.00 1.00
EBITDA: N/A N/A N/A N/A
Operating Margin: 0.81 0.04 0.25 0.78
Net Income: 26.87M 29.59M 156.42M N/A
EPS: 1.56 2.84 1.60 0.01
P/E: 14.32 3.46 23.70 29.00
PEG (5 yr expected): 2.62 N/A N/A N/A
P/S: 38.39 1.84 5.67 0.15
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Home Loan Servicing Solutions is trading below the industry average P/E ratio, which could explain some of the insider buying.

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are eight analyst buy ratings, three neutral ratings and one sell rating, with an average target price of $25.00. The stock is trading at a P/E ratio of 14.32 and a forward P/E ratio of 12.27. The stock has a 6.45% dividend yield. I have a neutral bias for the stock currently based on the significant premium to the net book value.

2. Kaminak Gold Corporation (OTCPK:KMKGF) is exploring the Coffee Gold Project, a high-grade oxidized gold project located in the emerging White Gold District of the Yukon Territory, Canada. In 2010, Kaminak executed the first ever drill program at Coffee, and since then, 16 gold discoveries have been drilled to date establishing Coffee as Canada's newest gold district. In less than 2.5 years, Kaminak has established a maiden National Instrument 43-101 Mineral Resource Estimate of 3.2 million ounces of gold at Coffee.

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Insider buying by insider (last 30 days)

  • Bradley Blacketor purchased 35,000 shares on February 20, and currently holds 35,000 shares or less than 0.1% of the company. Bradley Blacketor serves as a director of the company.
  • Richard Hall purchased 50,000 shares on February 20, and currently holds 50,000 shares or less than 0.1% of the company. Richard Hall serves as a director of the company.
  • John Robins purchased 86,250 shares on February 20, and currently holds 592,499 shares or 0.7% of the company. John Robins is Chairman of the Board of Directors.
  • Jonathan Singh purchased 12,000 shares on February 12, and currently holds 12,000 shares or less than 0.1% of the company. Jonathan Singh is Interim Chief Financial Officer.
  • Eira Thomas purchased 560,000 shares on February 20, and currently holds 560,000 shares or 0.7% of the company. Eira Thomas serves as a director of the company.

Insider buying by calendar month

Here is a table of Kaminak Gold's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 743,250 0
January 2013 0 0
December 2012 199,500 0
November 2012 10,000 0
October 2012 0 0
September 2012 0 0
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The month of February 2013 has seen the most insider buying.

Financials

The company reported the fiscal year 2012, which ended September 30, 2012, financial results on January 23, with the following highlights:

Revenue $0
Net loss $5.9 million
Cash $6.6 million
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On October 11, 2012, the company closed a bought deal private placement financing for 4,810,000 flow-through common shares at a price of $2.50 per flow-through common share for gross proceeds of $12,025,000.

Upcoming milestones

Fully funded $11,000,000 exploration program

• 35,000m of drilling beginning in March

My analysis

There have been five different insiders buying and there have not been any insiders selling the shares during the last 30 days. The stock has a 3.5% insider ownership and a 20% institutional ownership. There are five analyst buy ratings, zero neutral ratings and zero sell ratings, with an average target price of $4.30. I have a cautiously bullish bias for the stock currently based on the large gold deposit and the intensive insider buying.

3. Almaden Minerals (NYSEMKT:AAU) engages in the acquisition, exploration, and development of mineral properties in Canada, the United States, and Mexico.

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Insider buying by insider (last 30 days)

  • Mark Brown purchased 5,000 shares on February 20, and currently holds 5,000 shares or less than 0.1% of the company. Mark Brown serves as a director of the company.
  • Duane Poliquin purchased 85,000 shares on February 6-20, and currently holds 2,192,137 shares or 3.7% of the company. Duane Poliquin is Founder & Chairman of the company.
  • Dione Bitzer purchased 4,900 shares on February 19, and currently holds 32,200 shares or less than 0.1% of the company. Dione Bitzer is Controller, Secretary.
  • Morgan Poliquin purchased 12,200 shares on February 6-15, and currently holds 967,397 shares or 1.6% of the company. Morgan Poliquin serves as a director of the company.
  • Korm Trieu purchased 3,500 shares on February 11 and currently holds 6,500 shares or less than 0.1% of the company. Korm Trieu is Chief Financial Officer.

Insider buying by calendar month

Here is a table of Almaden Minerals' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 110,600 0
January 2013 0 0
December 2012 0 0
November 2012 0 21,000
October 2012 0 0
September 2012 0 464,000
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The month of February 2013 has been the only month with insider buying since at least September 2012.

Financials

The company reported the third-quarter financial results on November 14, with the following highlights:

Revenue $0.1 million
Net loss $2.0 million
Cash $18.3 million
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Outlook

Almaden has sufficient cash on hand to conduct its exploration and development plans for the next fiscal year. Almaden has set significant milestones including the following:

Mexican projects:

  • Ixtaca - The company continues to drill as part of its on-going exploration drill program.
  • El Cobre -The company has planned a 5,000-meter exploration drill program to begin in November 2012.
  • Others - The company is advancing a regional pipeline of projects along trends identified from the company's extensive past exploration programs.

Nevada, USA projects:

  • Willow - a first stage drill program is planned to test both a high sulphidation epithermal gold target and a porphyry copper-gold target. This will depend on availability of personnel and budgets.
  • BP - geophysical and geochemical exploration program in 2013 to define targets for drilling.

Canadian projects:

  • Merit - drilling is expected in 2013.

My analysis

There have been five different insiders buying and there have not been any insiders selling the shares during the last 30 days. Almaden is a well-financed with cash, gold inventory and equity investments totaling approximately $31 million as of January 15, 2013. I have a cautiously bullish bias for the stock currently based on the company's well diversified project portfolio and the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.