Insiders Are Buying Sunshine Oilsands

Oct. 7.13 | About: Sunshine Oilsands (SUNYF)

In this article, I will feature one oil sands company that has 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%.

Sunshine Oilsands (OTC:SUNYF) is one of the largest non-partnered holders of oil sands leases by area in the Athabasca oil sands region, which is located in the province of Alberta, Canada.

Click to enlarge

Insider buying during the last 30 days

  • Songbo Cong purchased 7,500 shares on September 30 pursuant to a purchase/ownership plan. Songbo Cong currently holds 5,478,336 shares or 0.2% of the company. Songbo Cong is vice president, facilities engineering. Songbo Cong increased his holdings by 0.1% during the last 30 days.
  • Mark Montemurro purchased 9,333 shares on September 30 pursuant to a purchase/ownership plan. Mark Montemurro currently holds 38,994 shares or less than 0.1% of the company. Mark Montemurro is senior vice president, engineering & geosciences for Sunshine Oilsands. Mark Montemurro increased his holdings by 31.5% during the last 30 days.
  • Robert Pearce purchased 9,333 shares on September 30 pursuant to a purchase/ownership plan. Robert Pearce currently holds 38,994 shares or less than 0.1% of the company. Robert Pearce is chief financial officer and senior vice president finance. Robert Pearce increased his holdings by 31.5% during the last 30 days.
  • Tony Sabelli purchased 8,333 shares on September 30 pursuant to a purchase/ownership plan. Tony Sabelli currently holds 74,817 shares or less than 0.1% of the company. Tony Sabelli is senior vice president, operations. Tony Sabelli increased his holdings by 12.5% during the last 30 days.
  • David Sealock purchased 8,333 shares on September 30 pursuant to a purchase/ownership plan. David Sealock currently holds 318,682 shares or less than 0.1% of the company. David Sealock is executive vice president, corporate operations. David Sealock increased his holdings by 2.7% during the last 30 days.
  • Albert Stark purchased 6,167 shares on September 30 pursuant to a purchase/ownership plan. Albert Stark currently holds 25,766 shares or less than 0.1% of the company. Albert Stark is treasurer. Albert Stark increased his holdings by 31.5% during the last 30 days.

Insider buying by calendar month

Here is a table of Sunshine Oilsands' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
September 2013 48,999 0
August 2013 67,400 0
Click to enlarge

There have been 116,399 shares purchased and there have been zero shares sold by insiders since August 2013.

Financials

Sunshine Oilsands reported the second-quarter financial results on August 14 with the following highlights:

Revenue $0
Net loss $8.3 million
Cash $94.3 million
Debt $0
Click to enlarge

Outlook

John Zahary, President and Chief Executive Officer of Sunshine Oilsands, commented on August 14:

"We are excited to see the significant progress at West Ells and eagerly anticipate plant commissioning and start up of operations in the next few months. Drilling and completions on the first 5,000 bpd pad is now done and drilling is nearly complete on the second 5,000 bpd pad. Surface work on the first pad will be finished soon and we will be readying the pad to start steaming. The second pad is expected to be ready to commence operations in early 2014. The central processing facility is progressing well, with the last modules expected to be delivered to the site in September. Construction is moving rapidly, to enable the plant to begin commissioning in the next few months."

Competition

Sunshine Oilsands' competitors include Suncor Energy (SU), Athabasca Oil (ATHOF.PK), and Canadian Natural Resources (NYSE:CNQ).

Here is a table of these competitors' insider-trading activities during the past six months.

Company Insider buying / shares Insider selling / shares
SU 0 186,860
ATHOF 8,064,600 20,000
CNQ 1,826 388,061
Click to enlarge

Only Sunshine Oilsands has seen intensive insider buying during the past 30 days.

Conclusion

There have been six different insiders buying Sunshine Oilsands and there have not been any insiders selling Sunshine Oilsands during the past 30 days. Four of these six insiders increased their holdings by more than 10%.

Sunshine Oilsands has 446 million barrels of 2P (proven plus probable) reserves with an aggregate pre-tax PV10% value of $990 million.

Sunshine Oilsands has a book value of $0.31 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTC:SUNYF over the next 72 hours. 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.