In this article, I will feature one energy company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
Pinecrest Energy (OTCPK:PNCGF), a junior oil and gas exploration company, engages in the acquisition, exploration, exploitation, development and production of petroleum and natural gas properties primarily in the western Canada Sedimentary Basin.
Insider buying during the last 30 days
- Wade Becker purchased 1,604,000 shares on September 20-23, and currently controls 4,269,363 shares or 2.0% of the company. Wade Becker is President and Chief Executive Officer. Wade Becker increased his holdings by 60.2% in September.
- Howard Crone purchased 1,510,000 shares on September 20-23, and currently holds 1,554,600 shares or 0.7% of the company. Howard Crone serves as a director of the company. Howard Crone increased his holdings by 3,386% in September.
- David Johnson purchased 900,500 shares on September 23, and currently holds 2,161,900 shares or 1.0% of the company. David Johnson serves as a director of the company. David Johnson increased his holdings by 71.4% in September.
- Robert Zakresky purchased 70,000 shares on September 12, and currently controls 707,500 shares or 0.3% of the company. Robert Zakresky serves as a director of the company. Robert Zakresky increased his holdings by 11.0% in September.
Insider buying by calendar month
Here is a table of Pinecrest's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 4,644,500 shares purchased and there have been zero shares sold by insiders since April 2013.
Pinecrest reported the second-quarter financial results on August 15 with the following highlights:
|Funds from operations||$16.4 million|
|Net income||$4.2 million|
|Net debt||$120.8 million|
Pinecrest expects to generate cash in excess of capital requirements in the 2014 calendar year.
Pinecrest's budget for the 2013 calendar year is:
- $80 million of total capital spending.
- 14-15 wells drilled.
- Implementation of six waterflood programs and a 3,100-3,400 boe per day exit production rate.
- Year-end net debt is projected to be between $120 million and $125 million.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Pinecrest has seen intensive insider buying during the last 30 days.
There have been four different insiders buying Pinecrest and there have not been any insiders selling Pinecrest during the last 30 days. All four of these insiders increased their holdings by more than 10%. Pinecrest has an insider ownership of 10.2%.
Pinecrest's total P+P reserves are 16,241 Mboe.
There are seven analyst buy ratings, five neutral ratings, and zero sell ratings with an average price target of $0.76. Pinecrest has a book value of $1.57 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.