2 Financials And 1 Energy Company With Recent Intensive Insider Buying

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 |  Includes: GCAAF, TCRRF, WBB
by: Markus Aarnio

Since my article April 22, titled "2 Commodity Stocks And 1 Retailer With Recent Intensive Insider Buying," the stocks that I featured in the article have performed as follows:

Company Price 4/19 Price 4/26 Change
The North West Company (OTC:NWTUF) $24.22 $25.04 +3.4%
MBAC Fertilizer (OTCPK:MBCFF) $2.04 $2.21 +8.3%
Sherritt International Corporation (OTCPK:SHERF) $4.39 $4.63 +5.5%
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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. Guardian Capital Group (OTC:GCAAF) operates as a diversified financial services company in Canada.

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Insider buying by insider (last 30 days)

  • Guardian Capital Group purchased 213,800 shares on April 1-22, and currently holds 213,800 shares or 0.7% of the company.
  • Harold Hillier purchased 29,800 shares on April 26, and currently holds 44,400 shares or 0.1% of the company. Harold Hillier serves as a director of the company.
  • Denis Larose purchased 4,000 shares on April 4-11, and currently controls 26,250 shares or less than 0.1% of the company. Denis Larose is an insider of the company.

Insider buying by calendar month

Here is a table of Guardian Capital Group's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2013 247,600 0
March 2013 151,092 49,350
February 2013 516 0
January 2013 49,700 0
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The month of April has seen the most insider buying.

Financials

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

Revenue $85.0 million
Net income $22.6 million
Book value $11.99 per share
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The Board has decided to transition to a quarterly dividend payment schedule, beginning in July, 2013.

Competition

One risk is competition. Guardian Capital Group's ability to compete is enhanced by the high quality of management team, the substantial depth in personnel and resources and a strong balance sheet, which provides with the flexibility to make the changes necessary to be competitive. In addition, Guardian Capital manages competition risk by tailoring its product and service offerings to market conditions and client needs.

My analysis

There have been three 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 20.72. I believe the stock could be a good pick closer to the book value of $11.99 per share.

2. Terrace Energy Corp. (OTCQX:TCRRF) engages in the exploration and production of oil and gas reserves in the onshore United States.

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Insider buying by insider (last 30 days)

  • Daniel Carriere purchased 76,900 shares on April 2-25, and currently holds 11,086,376 shares or 17.5% of the company. Daniel Carriere is Chairman of the Board. Daniel Carriere also purchased $690,000 worth of convertible notes on April 2 pursuant to a private placement.
  • William McCartney purchased $50,000 worth of convertible notes on April 2, pursuant to a private placement. William McCartney serves as a director of the company.
  • Murray Oliver purchased $50,000 worth of convertible notes on April 2, pursuant to a private placement. Murray Oliver serves as a director of the company.
  • Kenneth Shannon purchased $500,000 worth of convertible notes on April 2, pursuant to a private placement. Kenneth Shannon serves as a director of the company.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

April 2013

76,900

0

March 2013

0

0

February 2013

0

0

January 2013

32,800

0

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

Financials

The company reported the third-quarter, which ended October 31, 2012, financial results on December 21, 2012, with the following highlights:

Revenue

$0.3 million

Net loss

$0.2 million

Cash

$1.5 million

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News

Gross revenues from oil & gas sales for the three months ended January 31, 2013, were approximately $2.3 million.

Competition

The oil and gas industry is highly competitive. Terrace's competitors for the acquisition, exploration, production and development of oil and natural gas properties, and for capital to finance such activities will include companies that have greater financial and personal resources available to them than Terrace has.

My analysis

There have been four different insiders buying the shares or notes and there have not been any insiders selling the shares during the last 30 days. The stock was trading at $0.10 in 2011, and is currently just pennies shy of $2. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. Westbury Bancorp (NASDAQ:WBB) offers banking services.

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Insider buying by insider (last 30 days)

  • Raymond Lipman purchased 5,966 shares on April 10, in the open market and 30,000 shares on April 9, pursuant to a stock offering. Raymond Lipman currently controls 35,966 shares or 0.7% of the company. Raymond Lipman is President and Chief Executive Officer and serves as Chairman of the Board of Directors.
  • William Gehl purchased 7,500 shares on April 9, pursuant to a stock offering. William Gehl currently holds 7,500 shares or 0.1% of the company. William Gehl serves as a director of the company.
  • Gerald Guarnaccio purchased 7,500 shares on April 9, pursuant to a stock offering. Gerald Guarnaccio currently controls 7,500 shares or 0.1% of the company. Gerald Guarnaccio serves as a director of the company.
  • Andrew Gumm purchased 15,000 shares on April 9, pursuant to a stock offering. Andrew Gumm currently controls 15,000 shares or 0.3% of the company. Andrew Gumm serves as a director of the company.
  • Kirk Emerich purchased 8,353 shares on April 9, pursuant to a stock offering. Kirk Emerich currently controls 8,353 shares or 0.2% of the company. Kirk Emerich has been employed by Westbury Bank since 1992, and is currently serving as Senior Vice President and Chief Financial Officer.
  • James Mohr purchased 5,500 shares on April 9, pursuant to a stock offering. James Mohr currently controls 5,500 shares or 0.1% of the company. James Mohr serves as a director of the company.
  • Nancie Heaps purchased 8,898 shares on April 9, pursuant to a stock offering. Nancie Heaps currently controls 8,898 shares or 0.2% of the company. Nancie Heaps is Senior Vice President and Secretary.
  • James Spella purchased 5,000 shares on April 9, pursuant to a stock offering. James Spella currently controls 5,000 shares or 0.1% of the company. James Spella serves as a director of the company.
  • Russell Brandt purchased 10,000 shares on April 9, pursuant to a stock offering. Russell Brandt currently controls 10,000 shares or 0.2% of the company. Russell Brandt serves as a director of the company.
  • Terry Wendorff purchased 15,000 shares on April 9, pursuant to a stock offering. Terry Wendorff currently holds 15,000 shares or 0.3% of the company. Terry Wendorff serves as a director of the company.
  • J.J. Ziegler purchased 20,000 shares on April 9, pursuant to a stock offering. J.J. Ziegler currently controls 20,000 shares or 0.4% of the company. J.J. Ziegler serves as a director of the company.
  • Greg Remus purchased 21,943 shares on April 9, pursuant to a stock offering. Greg Remus currently controls 21,943 shares or 0.4% of the company. Greg Remus is Senior Vice President.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

April 2013

160,660

0

March 2013

0

0

February 2013

0

0

January 2013

0

0

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The stock started trading on April 10.

Financials

The company reported the three months ending December 31, 2012, financial results on March 27, with the following highlights:

Net income $0.8 million
Pro forma stockholders' equity $17.32 per share
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On April 9, 2013, Westbury announced that it completed its stock offering. The company sold 5,091,625 shares of common stock at $10.00 per share in its subscription offering for gross offering proceeds of $50.9 million, including 411,403 shares purchased by Westbury Bank's employee stock ownership plan.

Competition

Westbury's primary market area consists of Washington and Waukesha Counties, Wisconsin, and to a lesser extent, northern Milwaukee County, Wisconsin.

Westbury faces competition within its market area both in making loans and attracting deposits. Westbury's market area has a concentration of financial institutions that include large money center and regional banks, community banks and credit unions. As of June 30, 2012, based on the most recent available FDIC data, Westbury's market share of deposits represented 14.69% of FDIC-insured deposits in Washington County, ranking Westbury second in market share of deposits in Washington County. As of December 31, 2011, based on the most recent available data, Westbury's market share of residential mortgage lending, based on the 12-month trailing origination volume, represented 7.89% of residential mortgage loans originated in Washington County, ranking Westbury second in market share of residential mortgage loans in Washington County. Westbury does not have a significant market share of either deposits or residential lending in either Waukesha County, or Milwaukee County.

My analysis

There have been 12 different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The stock started trading on April 10 after the stock offering. The company has a book value of $17.32 per share. I believe the stock could be a good pick below the book value.

Disclosure: I am long OTCPK:MBCFF. 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.