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Editors' Note: This article covers one or more micro-cap stocks. Please be aware of the risks associated with these stocks.

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:

  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 increased their holdings by more than 10%.

Harvest Natural Resources (NYSE:HNR) engages in the acquisition, exploration, development, production, and disposition of oil and natural gas properties.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Harvest's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
Stephen ChesebroChairmanNov 27100,000Yes449,521 shares+28.6%
Patrick MurrayDirectorNov 2725,000Yes237,521 shares+11.8%
J. Michael StinsonDirectorNov 2731,000Yes129,667 shares+31.4%
James EdmistonCEONov 2750,000Yes367,766 shares+15.7%
Stephen HaynesCFONov 2710,000Yes71,647 shares+16.2%
Robert SpeirsSVPNov 2730,000Yes225,483 shares+15.3%

There have been 246,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
November 2013246,0000
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 246,000 shares purchased and there have been zero shares sold by insiders this year. The month of November has seen all of the insider buying.

Financials

Harvest reported the third-quarter financial results on November 12 with the following highlights:

Net income$2.0 million
Cash$3.9 million
Debt$76.8 million

On November 27, Harvest closed a $5.4 million financing.

Outlook

Harvest is currently in a process to sell its 32% interest in Petrodelta to Pluspetrol for $400 million.

Competition

Harvest's competitors include Talisman Energy (NYSE:TLM), BP plc (NYSE:BP), and EOG Resources (NYSE:EOG). Here is a table comparing these companies.

CompanyHNRTLMBPEOG
Market Cap:155.17M12.40B145.83B45.08B
Employees:523,08785,7002,650
Qtrly Rev Growth (yoy):N/A-0.270.050.33
Revenue:N/A5.38B379.14B13.76B
Gross Margin:N/A0.650.110.59
EBITDA:-44.62M4.26B29.67B6.86B
Operating Margin:N/A-0.070.040.16
Net Income:4.89M197.00M24.46B1.11B
EPS:0.270.097.674.08
P/E:14.45133.566.0740.48
PEG (5 yr expected):0.057.973.901.59
P/S:N/A2.340.393.27
P/B:0.361.341.133.03

Harvest has the lowest P/B ratio among these four companies.

Here is a table of these competitors' insider-trading activities this year.

CompanyInsider buying / sharesInsider selling / shares
TLM37,8700
EOG3,000349,407

Only Harvest has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying Harvest and there have not been any insiders selling Harvest during the last 30 days. All six of these insiders increased their holdings by more than 10%. Harvest has an insider ownership of 4.20%.

There is one analyst buy rating, one neutral rating, and zero sell ratings with an average price target of $6.50. Harvest has a book value of $10.48 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

Source: Harvest Natural Resources: 6 Different Insiders Have Purchased Shares Last Week