Manitok Energy: 5 Different Insiders Have Purchased Shares Since November 8

| About: Manitok Energy, (MKRYF)

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 stock 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%.

Manitok Energy (OTC:MKRYF) engages in the acquisition, exploration, development, and production of petroleum and natural gas reserves in Western Canada.

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Bruno Geremia Chairman Nov 8-Dec 5 23,000 Yes and No 877,000 shares +2.7%
Wilfred Gobert Director Nov 8-Dec 2 127,800 Yes and No 708,300 shares +22.0%
Gregory Peterson Director Nov 8 4,100 Yes 179,812 shares +2.3%
Tom Spoletini Director Nov 8 10,900 Yes 281,300 shares +4.0%
Cameron Vouri COO Dec 3 25,000 No 125,000 shares +25.0%

There have been 190,800 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
December 2013 133,000 0
November 2013 57,800 0
October 2013 0 0
September 2013 0 0
August 2013 0 10,000
July 2013 5,000 0
June 2013 0 15,000
May 2013 0 0
April 2013 0 0
March 2013 2,400 0
February 2013 0 0
January 2013 8,000 0

There have been 206,200 shares purchased and there have been 25,000 shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

Manitok Energy reported the third-quarter financial results on November 29 with the following highlights:

Revenue $20.2 million
Funds from operations $8.3 million
Net income $0.3 million
Net debt $21.4 million
Production 3,819 boe/d

Outlook

Manitok Energy's guidance for the fourth quarter is as follows:

Funds from operations $13-$14 million
Capital expenditures, net $46-$48 million
Net debt at year end $32-$34 million

(Source: December presentation)

Competition

Manitok Energy's competitors include RMP Energy (OTCPK:OEXFF), and NuVista Energy (OTC:NUVSF). Here is a table comparing these companies.

Company MKRYF OEXFF NUVSF
Market Cap: 138.29M 605.55M 825.65M
Qtrly Rev Growth (yoy): 2.27 0.50 0.01
Revenue: 52.64M 114.26M 188.25M
EBITDA: 32.79M 76.80M 53.84M
Operating Margin: 0.21 0.18 -0.16
Net Income: 4.08M -3.97M -74.17M
EPS: 0.05 -0.04 -0.65
P/E: 37.11 N/A N/A
P/S: 2.63 5.30 4.39

Manitok Energy has the lowest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
OEXFF 199,680 260,000
NUVSF 94,258 34,215

RMP Energy has also seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Manitok Energy and there have not been any insiders selling Manitok Energy during the last 30 days. Two of these five insiders increased their holdings by more than 10%. Manitok Energy has an insider ownership of 6.0%.

There are nine analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $3.64. Manitok Energy has a book value of $1.39 per share. I believe the stock could be a good pick around $1.50 based on the intensive insider buying.

(Source: December presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTC:MKRYF 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.