1 REIT, 1 Utility And 1 Bank With Recent Intensive Insider Buying

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 |  Includes: CDZI, HASI, UBOH
by: Markus Aarnio

Since my article April 26, titled "2 Energy Stocks And 1 Biotech With Recent Intensive Insider Buying," the stocks that I featured have performed as follows:

Company

Price 4/26

Price 5/1

Change

Strategic Oil & Gas (OTCPK:SOGFF)

$1.13

$1.04

-8.0%

Trimel Pharmaceuticals Corporation (OTCPK:TRLPF)

$0.89

$1.05

+18.0%

Alterra Power (OTCPK:MGMXF) $0.32 $0.35 +9.4%
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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. Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) is a REIT that provides debt and equity financing focusing on infrastructure projects.

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Insider buying by insider (last 30 days)

  • Nathaniel Rose purchased 10,000 shares on April 26 and currently holds 132,891 shares or 0.9% of the company. Nathaniel Rose is the chief investment officer and senior vice president.
  • Rhem Wooten purchased 24,000 shares on April 23 pursuant to the initial public offering. Rhem Wooten currently controls 116,833 shares or 0.8% of the company. Rhem Wooten is the executive vice president, origination and has been with Hannon Armstrong as a managing director since October 2010.
  • Steven Chuslo purchased 100 shares on April 23 pursuant to the initial public offering. Steven Chuslo currently controls 92,933 shares or 0.6% of the company. Steven Chuslo is the general counsel and executive vice president for Hannon Armstrong.
  • Richard Osborne purchased 5,000 shares on April 24 and currently holds 8,643 shares or less than 0.1% of the company. Richard Osborne serves as a director of the company.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
April 2013 39,100 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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Hannon Armstrong had its IPO in April.

Financials

The company reported the pro forma full year 2012 financial results with the following highlights:

Revenue $21.2 million
Net income $9.3 million
Earnings per share $0.60
Cash $50.5 million
Debt $200.1 million
Net tangible book value $9.74 per share
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On April 17, Hannon Armstrong announced the pricing of its initial public offering of 13,333,333 shares of common stock at a price of $12.50 per share.

Competition

Hannon Armstrong competes against a number of parties who may provide alternatives to Hannon Armstrong's investments including specialty finance companies, savings and loan associations, banks, private equity, hedge or infrastructure investment funds, insurance companies, mutual funds, institutional investors, investment banking firms, financial institutions, utilities, project developers, governmental bodies and other entities. Hannon Armstrong competes primarily on the basis of its pricing, its structuring, its flexibility and the breadth and depth of its expertise. In many cases, Hannon Armstrong may face competition on a particular project from one of these parties and work as a partner or participant in another project with the same party.

My analysis

The stock started trading on April 19 after its IPO. There have been four different insiders buying the shares and there have not been any insiders selling the shares since the IPO. The stock is trading at a P/E ratio of 18.92. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Cadiz (NASDAQ:CDZI) operates as a land and water resource development company in the United States.

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Insider buying by insider (last 30 days)

  • Winston Hickox purchased 9,000 shares on April 25 and currently controls 19,152 shares or 0.1% of the company. Winston Hickox was appointed a director of the company in October 2006.
  • Stephen Courter purchased 1,300 shares on April 19-23 and currently holds 8,953 shares or less than 0.1% of the company. Stephen Courter was appointed a director of the company in October 2008.
  • Geoffrey Grant purchased 5,114 shares on April 1-2 and currently holds 44,733 shares or less than 0.1% of the company. Geoffrey Grant was appointed a director of the company in January 2007.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
April 2013 15,414 0
March 2013 29,886 0
February 2013 0 0
January 2013 0 0
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There have been 45,300 shares purchased and zero shares sold this year.

Financials

The company reported the full year 2012 financial results on March 15 with the following highlights:

Revenue $0.4 million
Net loss $19.6 million
Cash $1.7 million
Debt $63.3 million
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Competition

Cadiz faces competition for the acquisition, development and sale of properties from a number of competitors. Cadiz may also face competition in the development of water resources and siting of renewable energy facilities associated with its properties. Since California has scarce water resources and an increasing demand for available water, Cadiz believes that location, price and reliability of delivery are the principal competitive factors affecting transfers of water in California.

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 company has a book value of -$1.09 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. United Bancshares (NASDAQ:UBOH) operates as a bank holding company for The Union Bank Company that provides various commercial banking services in northwest and central Ohio.

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Insider buying by insider (last 30 days)

  • Heather Oatman purchased 866 shares on April 26 pursuant to a Employee Stock Ownership Plan. Heather Oatman currently controls 9,629 shares or 0.3% of the company. Heather Oatman is Secretary of the company.
  • Daniel Schutt purchased 1,327 shares on April 26 pursuant to a Employee Stock Ownership Plan. Daniel Schutt currently controls 22,004 shares or 0.6% of the company. Daniel Schutt serves as a director of the company.
  • Diana Engelhardt purchased 1,371 shares on April 26 pursuant to a Employee Stock Ownership Plan. Diana Engelhardt currently controls 1,703 shares or less than 0.1% of the company. Diana Engelhardt is CFO of the company.
  • Brian Young purchased 1,786 shares on April 26 pursuant to a Employee Stock Ownership Plan. Brian Young currently controls 19,569 shares or 0.6% of the company. Brian Young is President & CEO.

Insider buying by calendar month

Here is a table of United Bancshares' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2013 5,350 0
March 2013 0 0
February 2013 0 0
January 2013 489 0
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There have been 5,839 shares purchased and zero shares sold this year.

Financials

The company reported the first-quarter financial results on April 26 with the following highlights:

Net income $1.1 million
Book value $18.66 per share
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Competition

United Bancshares' competitors include Fifth Third Bancorp (NASDAQ:FITB), Huntington Bancshares (NASDAQ:HBAN) and JPMorgan Chase & Co. (NYSE:JPM). Here is a table comparing these companies.

Company UBOH FITB HBAN JPM Industry Average (Money Center Banks)
Market Cap: 41.35M 14.68B 5.96B 183.50B 152.42B
Employees: 138 20,744 12,052 255,898 137.20K
Qtrly Rev Growth (yoy): -0.06 0.05 -0.03 0.01 0.24
Revenue: 21.74M 6.33B 2.69B 90.84B 26.73B
Operating Margin: 0.26 0.39 0.37 0.36 0.31
Net Income: 4.58M 1.52B 607.62M 21.43B N/A
EPS: 1.33 1.67 0.71 5.60 0.74
P/E: 9.04 10.07 10.01 8.58 23.64
PEG (5 yr expected): N/A 2.27 1.87 1.22 0.69
P/S: 1.91 2.35 2.24 2.06 2.77
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United Bancshares is trading below the industry average P/S and P/E ratios.

My analysis

There have been four 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 9.04 and the stock has a dividend yield of 1.66%. I believe the stock is a good pick below the book value of $18.66 per share.

Disclosure: I am long OTCPK:MGMXF. 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.