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Since my January 26 article titled "3 Commodity Stocks With Recent Intensive Insider Buying", the stocks that I featured in the article have performed as follows:

CompanyPrice 1/24Price 4/19Change
ARC Resources (OTCPK:AETUF)$24.10$25.93+7.6%
Veresen (OTC:FCGYF)$12.76$12.67-0.7%
SunCoke Energy Partners (NYSE:SXCP)$19.19$20.55+7.1%

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. The North West Company (OTC:NWTUF) engages in the retail of food and everyday products and services to rural communities and urban neighborhoods.

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Insider buying by insider (last 30 days)

  • Edward Kennedy purchased 16,962 shares on April 16, and currently holds 108,198 shares or 0.2% of the company. Edward Kennedy is President, Chief Executive Officer and Director of the company.
  • Paulina Hiebert purchased 1,018 shares on March 29, pursuant to a purchase/ownership plan. Paulina Hiebert currently holds 2,044 shares or less than 0.1% of the company. Paulina Hiebert is Vice President - Legal, Corporate Secretary.
  • David Chatyrbok purchased 113 shares on March 29, pursuant to a purchase/ownership plan. David Chatyrbok currently holds 18,369 shares or less than 0.1% of the company. David Chatyrbok serves as a director of the company.
  • Craig Gilpin purchased 179 shares on March 29, pursuant to a purchase/ownership plan. Craig Gilpin currently holds 500 shares or less than 0.1% of the company. Craig Gilpin joined the company in 2010 as Executive Vice-President and Chief Corporate Officer.
  • John King purchased 3,571 shares on March 29, pursuant to a purchase/ownership plan. John King currently controls 56,431 shares or 0.1% of the company. John King is Chief Financial Officer.
  • George McConnell purchased 1,537 shares on March 29, pursuant to a purchase/ownership plan. George McConnell currently holds 4,444 shares or less than 0.1% of the company. George McConnell is a senior officer of the company.
  • Scott McKay purchased 937 shares on March 29, pursuant to a purchase/ownership plan. Scott McKay currently holds 10,277 shares or less than 0.1% of the company. Scott McKay is Vice-President, General Merchandise Procurement and Marketing.
  • Christine Reimer purchased 725 shares on March 29, pursuant to a purchase/ownership plan. Christine Reimer currently holds 6,897 shares or less than 0.1% of the company. Christine Reimer is Vice-President, Canadian Sales and Operations.

Insider buying by calendar month

Here is a table of North West's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 201316,9620
March 20138,0800
February 201300
January 20130558

The month of April has seen the most insider buying this year.

Financials

The company reported the full year, which ended January 31, financial results on March 14, with the following highlights:

Revenue$1.5 billion
Net income$65.1 million
Cash$38.7 million
Debt$163.4 million

Outlook

Continued work on merchandise productivity is expected to provide margin upside within remote markets served by the company's Alaskan, northern Canada, and Cost-U-Less stores. Food inflation is forecast to be in the 1.5% - 2.5% range with the potential for higher increases within international markets. Overall, consumer incomes and spending momentum is expected to be flat to modestly higher over 2012, depending on the degree of improvement within the natural resource and tourism sectors. The company's Giant Tiger stores are expected to come under food gross margin pressure due to an increase in competition from existing retailers and new entrants forecast in 2013. Offsetting gains are expected from lower perishable product waste, improved general merchandise inventory productivity, lower markdowns and the closure of under performing stores in fiscal 2012.

Competition

North West has a leading market position in a large percentage of the markets it serves. Sustaining and growing this position depends on the company's ability to continually improve customer satisfaction while identifying and pursuing new sales opportunities. North West actively monitors competitive activity and is proactive in enhancing its value offer elements, ranging from in-stock position to service and pricing. The entrance of new competitors, an increase in competition, both local and outside the community, or the introduction of new products and services in the company's markets could negatively impact sales and financial performance.

My analysis

There have been eight different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The stock is trading at a P/E ratio of 16.47 and the stock has a dividend yield of 4.98%. The company has a book value of $6.24 per share and the stock has a $38.5 price target from the Point and Figure chart. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. MBAC Fertilizer (OTCQX:MBCFF) engages in the mining, exploration, and production of phosphate and potash fertilizers in Brazil. It processes and sells phosphate rock to local farmers.

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Insider buying by insider (last 30 days)

  • B&A Mineracao S.A. purchased 3,182,000 shares on April 16, pursuant to a private placement. B&A Mineracao S.A. currently holds 18,418,040 shares or 12.1% of the company.
  • Roberto Belger purchased 70,000 shares on April 16, pursuant to a private placement. Roberto Belger currently holds 145,000 shares or less than 0.1% of the company. Roberto Belger is President and Chief Operating Officer.
  • Stephen Burleton purchased 35,000 shares on April 16, pursuant to a private placement. Stephen Burleton currently holds 256,766 shares or 0.2% of the company. Stephen Burleton is Vice President, Corporate Development.
  • Brian Hayward purchased 20,000 shares on April 16, pursuant to a private placement. Brian Hayward currently holds 60,000 shares or less than 0.1% of the company. Brian Hayward serves as a director of the company.
  • Antonio Nagle purchased 45,000 shares on April 16, pursuant to a private placement. Antonio Nagle currently holds 45,000 shares or less than 0.1% of the company. Antonio Nagle is Vice President, Administration.
  • David Nierenberg purchased 2,273,000 shares on April 16, pursuant to a private placement. David Nierenberg currently controls 11,909,900 shares or 7.8% of the company. David Nierenberg serves as a director of the company.
  • David Peterson purchased 200,000 shares on April 16, pursuant to a private placement. David Peterson currently holds 350,000 shares or 0.2% of the company. David Peterson serves as a director of the company.
  • Rodrigo Pinto purchased 30,000 shares on April 16, pursuant to a private placement. Rodrigo Pinto currently holds 43,616 shares or less than 0.1% of the company. Rodrigo Pinto is Vice President, Finance and CFO.
  • Antenor Silva purchased 227,500 shares on April 16, pursuant to a private placement. Antenor Silva currently holds 1,046,141 shares or 0.7% of the company. Antenor Silva is Chief Executive Officer and Vice Chairman of the company.
  • Cintia Zanellato purchased 10,000 shares on April 16, pursuant to a private placement. Cintia Zanellato currently holds 10,000 shares or less than 0.1% of the company. Cintia Zanellato is a senior officer of the company.

Insider buying by calendar month

Here is a table of MBAC Fertilizer's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 20136,092,5000
March 2013340,0000
February 20131,500,7550
January 201310,0000

The month of April has seen the most insider buying this year.

Financials

The company reported the full-year 2012 financial results on April 1, with the following highlights:

Revenue$5.8 million
Net loss$27.4 million
Cash$9.8 million
Debt$173.5 million

On February 7, 2013, the company announced that it had completed its previously announced equity financing, including the full amount of the over-allotment option, for aggregate gross proceeds of approximately $34.5 million.

On April 16, 2013, MBAC Fertilizer announced that it had completed its previously announced bought deal private placement, including the partial exercise of the underwriters' option, for aggregate gross proceeds of approximately $51.7 million.

Upcoming milestones

Itafós project

  • Production is expected by the end of Q2/2013

Santana phospate project

  • The next steps for the project will be to increase the mineral resource confidence to include measured mineral resource estimates.
  • The company intends to complete the definitive feasibility study by Q2 2013.

Araxá project

  • A pilot plant is currently under operation to confirm the results achieved in the laboratory for the production of bulk REOs concentrate. Phase 2 of the pilot plant, which comprises of the solvent extraction for the separation of the REOs is planned for the second half of 2013. The company has already designed this separation plant using a software model tested in industrial facilities in the past.
  • The company intends to complete a definitive feasibility study by Q1 2014.

Competition

The company's mineral exploration, development and integrated fertilizer business is competitive with other entities engaged in the same business. MBAC believes that it is well-positioned to compete in its market segment given the anticipated low cost of production, advantageous location of its operations and the experienced management team it has retained. It also has a unique footprint in the Cerrado area of Brazil with potential for off-take agreements to be entered into, which support the potential single super phosphate [SSP] market in such area.

Brazil is unique among countries with its favourable climate, abundance of fresh water and arable land available for agriculture. As the global demand for food increases, Brazil remains an attractive market for an increase in agriculture exports which in turn increases fertilizer demand.

My analysis

There have been seven different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The management and directors own approximately 14% of the company. There are seven analyst buy ratings, zero neutral ratings and zero sell ratings, with an average target price of $4.06. Revenue from the company's most advanced Itafós project are expected by the end of the second quarter 2013. The Itafós project has a NPV of approximately $254 million. I have a cautiously bullish bias for the stock currently based on the intensive insider buying and several upcoming milestones.

3. Sherritt International Corporation (OTCPK:SHERF), a diversified natural resource company, produces nickel, cobalt, thermal coal, oil and gas, and electricity.

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Insider buying by insider (last 30 days)

  • Edythe Marcoux purchased 20,900 shares on April 4, and currently holds 40,900 shares or less than 0.1% of the company. Edythe Marcoux serves as a director of the company.
  • David Pathe purchased 30,000 shares on March 21, and currently holds 55,218 shares or less than 0.1% of the company. David Pathe is President and Chief Executive Officer of Sherritt.
  • Karen Trenton purchased 1,000 shares on March 25, and currently holds 3,685 shares or less than 0.1% of the company. Karen Trenton is a senior officer of the company.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
April 201320,9000
March 201331,0000
February 201300
January 201300

There have been 51,900 shares purchased and zero shares sold this year.

Financials

The company reported the full-year 2012 financial results on February 27, with the following highlights:

Revenue$1.8 billion
Net income$33.2 million
Cash$526.8 million
Debt$2.0 billion

Outlook

  • Consolidated finished nickel production of approximately 78,000 tonnes (100% basis) is expected in 2013 as Ambatovy continues its ramp-up and achieves commercial production during the year.
  • Total tonnage of coal mined by Sherritt in 2013 is expected to be lower than the prior year by approximately 10 million tonnes due to the transfer of mining operations at the Highvale mine to the customer/owner. The impact on the Adjusted EBITDA of the business is limited to the annual fees earned.
  • Gross working-interest oil production in Cuba for 2013 is expected to be approximately 18,000 bopd, 11% lower than 2012, due to natural reservoir declines.
  • Initial electricity production from the Boca de Jaruco Combined Cycle Project in Cuba is expected in first-half 2013.

Competition

Sherritt is a world leader in the mining and refining of nickel from lateritic ores with projects and operations in Canada, Cuba, Indonesia and Madagascar. The company is the largest thermal coal producer in Canada, and is the largest independent energy producer in Cuba, with extensive oil and power operations on the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The stock is trading at a P/E ratio of 37.57 and the stock has a dividend yield of 4.02%. The company has a book value of $12.62 per share. I believe the stock is a good pick below the book value.

Source: 2 Commodity Stocks And 1 Retailer With Recent Intensive Insider Buying