3 Stocks With Recent Intensive Insider Buying

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 |  Includes: FEOVF, FSBK, PVR
by: Markus Aarnio

Since my December 7, 2012, article titled "5 Stocks With Recent Intensive Insider Buying", the stocks that I featured have performed as follows:

Company Price 12/6 Price 2/25 Change
WFR $2.97 $4.77 +60.6%
FSCI $24.96 $37.02 +12.1%
WLDN $2.15 $2.01 -6.5%
CRFN $4.91 $4.34 -11.6%
CHFC $21.59 $24.46 +13.3%
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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. PVR Partners (NYSE:PVR) engages in the management of coal and natural resource properties; and gathering and processing of natural gas in the United States.

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Insider buying by insider (last 30 days)

  • Robert Wallace purchased 2,000 shares on February 25 and currently holds 17,454 shares or less than 0.1% of the company. Robert Wallace has served as Executive Vice President and Chief Financial Officer of PVR's general partner since March 2010.
  • Edward Cloues purchased 2,500 shares on February 25 and currently holds 35,192 shares or less than 0.1% of the company. Edward Cloues serves as a director of the company.
  • William Shea purchased 25,000 shares on February 25 and currently holds 81,077 shares or less than 0.1% of the company. William Shea has served as a director and as President and Chief Executive Officer of PVR's general partner since June, 2012.

Insider buying by calendar month

Here is a table of PVR Partners' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 29,500 0
January 2013 0 0
December 2012 0 2,300
November 2012 0 0
October 2012 0 0
September 2012 0 5,000
August 2012 0 18,000
July 2012 0 500
June 2012 0 8,700
May 2012 0 0
April 2012 0 0
March 2012 0 0
February 2012 0 0
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The month of February 2013 has seen the most insider buying.

Financials

The company reported the full year 2012 financial results on February 20 with the following highlights:

Revenue $1.0 billion
Net loss $70.6 million
Cash $14.7 million
Debt $1.5 billion
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Outlook

Full year 2013 adjusted EBITDA for the Eastern Midstream Segment is expected to be in the range of $190 million - $230 million, the Midcontinent Midstream Segment is expected to be in the range of $70 million to $80 million and the Coal and Natural Resource Management Segment is expected to be in the range of $75 million to $85 million. Management believes that 2013 maintenance capital expenditures will be in the range of $14 million to $18 million and internal growth capital will be in the range of $350 million to $400 million.

Competition

PVR Partners' competitors include Alliance Resource Partners (NASDAQ:ARLP), Arch Coal (ACI) and Consol Energy (NYSE:CNX). Here is a table comparing these companies.

 

 

 

 

Company PVR ARLP ACI CNX Industry Average (Industrial Metals & Minerals)
Market Cap: 2.11B 2.22B 1.12B 7.11B 468.64M
Employees: N/A N/A N/A 8,896 3.02K
Qtrly Rev Growth (yoy): -0.08 0.16 -0.21 -0.13 0.22
Revenue: 1.01B 2.03B 4.16B 5.05B 2.37B
Gross Margin: 0.37 0.33 0.17 0.29 0.32
EBITDA: 261.64M 611.63M 667.53M 960.96M 38.66M
Operating Margin: 0.13 0.19 0.04 0.07 0.11
Net Income: -70.62M 228.73M -683.96M 388.47M N/A
EPS: -1.43 6.21 -3.24 1.70 N/A
P/E: N/A 9.72 N/A 18.33 15.74
PEG (5 yr expected): 4.59 7.60 -3.41 2.45 0.97
P/S: 2.09 1.09 0.27 1.41 2.34
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PVR Partners is trading below the industry average P/S 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 three analyst buy ratings, three neutral ratings and 0 sell ratings, with an average target price of $28.50. The stock is trading at a forward P/E ratio of 20.00. The company has a book value of $9.65 per share and the stock has a 9.73% dividend yield. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. First South Bancorp (NASDAQ:FSBK) operates as the bank holding company for First South Bank that provides commercial banking services in North Carolina.

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Insider buying by insider (last 30 days)

  • Steven Lee purchased 10,000 shares on February 25 and currently controls 10,900 shares or 0.1% of the company. Steven Lee serves as a director of the company.
  • Bruce Elder purchased 2,500 shares on February 25 and currently controls 10,200 shares or 0.1% of the company. Bruce Elder is President and CEO of the company.
  • Marshall Singleton purchased 750 shares on February 25 and currently controls 261,672 shares or 2.7% of the company. Marshall Singleton serves as a director of the company.

Insider buying by calendar month

Here is a table of First South Bancorp's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 13,250 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 700 0
September 2012 5,000 0
August 2012 5,000 0
July 2012 0 0
June 2012 0 0
May 2012 0 0
April 2012 0 0
March 2012 0 0
February 2012 1,636 0
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The month of February 2013 has seen the most insider buying.

Financials

The company reported the full year 2012 financial results on February 22 with the following highlights:

Net loss $11.0 million
Book value $7.66 per share
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Competition

First South Bancorp's competitors include ECB Bancorp (NYSE:ECBE) and First Citizens Bancshares (NASDAQ:FCNCA). Here is a table comparing these companies.

Company FSBK ECBE FCNCA Industry Average (Savings & Loans)
Market Cap: 62.41M 43.44M 1.81B 120.57M
Employees: 251 249 4,417 224.00
Qtrly Rev Growth (yoy): 0.04 0.28 0.00 0.12
Revenue: 33.96M 33.24M 978.52M 46.75M
Gross Margin: N/A N/A N/A 0.97
EBITDA: N/A N/A N/A 24.88M
Operating Margin: 0.26 0.17 0.27 0.34
Net Income: 2.35M -61.00K 143.15M N/A
EPS: 0.24 -0.02 13.93 0.72
P/E: N/A N/A 12.65 14.37
PEG (5 yr expected): N/A 12.42 N/A 2.13
P/S: 1.84 1.31 1.85 3.24
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First South Bancorp is trading below the industry average P/S ratio, which could explain some of the insider buying.

My analysis

The stock has a $8 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 stock is currently trading below the book value of $7.66 per share which makes the stock look attractive from the current level.

3. Oceanic Iron Ore Corp. (OTCQX:FEOVF) engages in the acquisition and exploration of iron ore properties in Québec, Canada. It holds a 100% interest in approximately 3,446 claims of the Ungava Bay iron property covering an area of 147,390 hectares in 3 project areas, including Hopes Advance, Morgan Lake, and Roberts Lake located in the Nunavik region of northern Québec.

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Insider buying by insider (last 30 days)

  • Frank Giustra purchased 1,594,500 shares on January 30 - February 4 and currently controls 22,063,000 shares or 11.2% of the company.
  • Alan Gorman purchased 95,000 shares on February 19-22 and currently holds 235,600 shares or 0.1% of the company. Alan Gorman is President and Chief Operating Officer.
  • Gordon Keep purchased 250,000 shares on February 4 and currently holds 2,530,500 shares or 1.3% of the company. Gordon Keep serves as a director of the company.

Insider buying by calendar month

Here is a table of Oceanic Iron Ore's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 1,994,500 0
January 2013 778,500 0
December 2012 50,000 0
November 2012 172,000 0
October 2012 12,902,500 0
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The month of February 2013 has seen the most insider buying since October 2012.

Financials

The company reported the second-quarter fiscal 2013, which ended September 30, 2012, financial results on November 27 with the following highlights:

Revenue $0
Net loss $0.6 million
Cash $2.5 million
Debt $3.1 million
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Upcoming milestones

The upcoming milestones for the Hopes Advance project are the following:

Development Activity Target Completion Date
Strategic Partnering & Financing 2013
Completion of Environmental Impact Study 2013
Negotiate impact benefits agreement with local stakeholders 2013
Feasibility Study 2013
Project construction 2014-2016
Production 2017-2047
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My analysis

The stock has a $2.81 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. In November 2012, the company published its Pre-Feasibility Study for the Hopes Advance project, which reported an estimated pre-tax NPV of $5.6 billion, and pre-tax IRR of 20.5% over a 31 year projected mine life at an 8% discount rate. The production is expected to start in 2017. I have a long position in the stock currently.

Disclosure: I am long OTCQX:FEOVF. 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.