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The iShares MSCI Canada Index (NYSEARCA:EWC) was trading as low as $13.64 in March 2009. The index is currently trading at $26.15, or 91.7% above the low made in March 2009.

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In this article, I will feature two Canadian companies 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. Canfor Pulp Products (OTC:CFPUF) engages in the production and supply of pulp and paper products worldwide.

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Insider buying by insider (last 30 days)

  • Canfor Pulp Products purchased 153,718 shares on June 14-27 and currently holds 153,718 shares or 0.2% of the company.
  • Glen Clark purchased 1,500 shares on June 17 and currently holds 1,500 shares or less than 0.1% of the company. Glen Clark serves as a director of the company.
  • Michael Korenberg purchased 1,607 shares on June 21 and currently holds 2,500 shares or less than 0.1% of the company. Michael Korenberg serves as a director of the company.

Insider buying by calendar month

Here is a table of Canfor Pulp Products' insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 2013156,8250
May 201300
April 201300
March 201300
February 201300
January 201300

The month of June has seen all of the insider buying this year.

Financials

The company reported the first-quarter financial results on May 1 with the following highlights:

Revenue$217.5 million
Net income$10.9 million
Cash$16.5 million
Debt$111.7 million

Outlook

Pulp

NBSK pulp markets are projected to remain fairly challenging through the second quarter of 2013, but annual spring maintenance downtime should allow for modest price increases. The outlook for the second half of the year is more uncertain given the new hardwood and softwood pulp capacity projected to come online. For the month of April, the company announced an increase in the North American NBSK pulp list price of $30 per tonne to $930.

Paper

Kraft paper demand is slow heading into the second quarter and order files are light. However, customer inventories remain low and demand is projected to show some improvement in the coming months. Prices for bleached and unbleached papers in North America and Europe are projected to remain flat through the second quarter of 2013.

Competition

The pulp industry is highly competitive, with a substantial number of competitors having extensive manufacturing expertise and sales and distribution organizations, some of which are larger than CPP's, but none of which is considered to be dominant. The principal competitive factors in the pulp market are price, quality, volume, availability, and reliability of supply, financial viability, and customer service.

CPP's main product line for its Kraft Paper business is high performance, bleached paper. CPP's main competitors in its sale of Kraft Paper products are several European producers.

Conclusion

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 41.09 and the stock has a dividend yield of 2.32%. The company has a book value of $5.64 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Progressive Waste Solutions (NYSE:BIN) operates as a vertically integrated non-hazardous solid waste management company in North America.

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Insider buying by insider (last 30 days)

  • Ian Kidson purchased 169 shares on June 27 pursuant to a purchase/ownership plan. Ian Kidson currently holds 4,549 shares or less than 0.1% of the company. Ian Kidson joined Progressive Waste Solutions in August 2012 as Vice President and Chief Financial Officer.
  • Douglas Knight purchased 972 shares on June 27 pursuant to a purchase/ownership plan. Douglas Knight currently holds 16,380 shares or less than 0.1% of the company. Douglas Knight serves as a director of the company.
  • Thomas Brown purchased 190 shares on June 27 pursuant to a purchase/ownership plan. Thomas Brown currently holds 56,502 shares or less than 0.1% of the company. Thomas Brown is Senior Vice President, Chief Operating Officer, U.S.
  • John Dillon purchased 972 shares on June 27 pursuant to a purchase/ownership plan. John Dillon currently holds 8,378 shares or less than 0.1% of the company. John Dillon serves as a director of the company.
  • James Forese purchased 1,458 shares on June 27 pursuant to a purchase/ownership plan. James Forese currently holds 11,611 shares or less than 0.1% of the company. James Forese is Non-Executive Chairman of the Board.
  • William Hulligan purchased 247 shares on June 27 pursuant to a purchase/ownership plan. William Hulligan currently controls 88,649 shares or less than 0.1% of the company. William Hulligan is President and Chief Operating Officer of the company.
  • Jeffrey Keefer purchased 972 shares on June 27 pursuant to a purchase/ownership plan. Jeffrey Keefer currently holds 4,341 shares or less than 0.1% of the company. Jeffrey Keefer serves as a director of the company.
  • Daniel Milliard purchased 972 shares on June 27 pursuant to a purchase/ownership plan. Daniel Milliard currently holds 16,374 shares or less than 0.1% of the company. Daniel Milliard serves as a director of the company.
  • Domenic Pio purchased 60,190 shares on June 18-27 pursuant to a purchase/ownership plan. Domenic Pio currently holds 79,263 shares or less than 0.1% of the company. Domenic Pio joined Progressive Waste Solutions in 2010 as Vice President and Canadian Chief Operating Officer.
  • Joseph Quarin purchased 458 shares on June 27 pursuant to a purchase/ownership plan. Joseph Quarin currently holds 159,150 shares or 0.1% of the company. Joseph Quarin is Vice Chairman and Chief Executive Officer of the company.

Insider buying by calendar month

Here is a table of Progressive Waste Solutions' insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 201366,6000
May 201300
April 201300
March 201338,32310,000
February 201300
January 20131610

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

Financials

The company reported the first-quarter financial results on May 1 with the following highlights:

Revenue$486.6 million
Net income$17.8 million
Cash$30.2 million
Debt$1.7 billion

Outlook

The company's guidance for 2013 is as follows:

Revenue$2.00-$2.02 billion
Adjusted EBITDA$545-$555 million
Free cash flow$200-$215 million

Competition

Progressive Waste Solutions' competitors include Casella Waste Systems (NASDAQ:CWST) and Republic Services (NYSE:RSG). Here is a table comparing these companies.

CompanyBINCWSTRSG
Market Cap:2.47B170.87M12.28B
Employees:7,658N/A30,000
Qtrly Rev Growth (yoy):0.110.130.01
Revenue:1.95B455.33M8.13B
Gross Margin:0.390.290.38
EBITDA:539.29M74.12M2.30B
Operating Margin:0.130.040.17
Net Income:101.63M-49.66M553.50M
EPS:0.87-1.591.51
P/E:24.72N/A22.48
PEG (5 yr expected):1.47-0.833.27
P/S:1.250.361.51

Progressive Waste Solutions has the second lowest P/S ratio among these three companies.

My analysis

There have been 10 different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The company has an insider ownership of 5.10%. There are eight analyst buy ratings, six neutral ratings and zero sell ratings with an average target price of $25.29. The stock is trading at a P/E ratio of 24.72 and a forward P/E ratio of 18.23. The company has a book value of $11.04 per share and the stock has a dividend yield of 2.56%. The stock is trading currently right at its 200-day moving average, which could be a good entry point for the stock.

Source: 2 Smaller Canadian Companies With Recent Intensive Insider Buying