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:
- 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 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|
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.
Manitok Energy reported the third-quarter financial results on November 29 with the following highlights:
|Funds from operations||$8.3 million|
|Net income||$0.3 million|
|Net debt||$21.4 million|
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)
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|
RMP Energy has also seen intensive insider buying during the last 30 days.
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.