Lightstream Resources: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Dec.12.13 | About: Lightstream Resources (LSTMF)

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%.

Lightstream Resources (OTCPK:LSTMF) operates as an oil and gas exploration and production company focusing on light oil Bakken and Cardium resource plays with conventional light oil assets in Canada.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Purchase Plan Current Ownership Increase In Shares
Corey Ruttan Director Nov 25 100,000 No 565,815 shares +21.5%
Brett Wilson Director Dec 11 66,335 Yes 634,527 shares +11.7%
John Wright CEO Nov 25-Dec 5 230,700 No 4,511,055 shares +5.4%
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There have been 397,035 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
December 2013 197,035 0
November 2013 200,000 0
October 2013 10,000 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 2,000 3,900
April 2013 21,051 0
March 2013 20,616 0
February 2013 0 0
January 2013 16,209 0
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There have been 466,911 shares purchased and there have been 3,900 shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

Lightstream reported the third-quarter financial results on November 7 with the following highlights:

Revenue $331.8 million
Funds from operations $179.7 million
Adjusted net income $52.0 million
Net debt $2.2 billion
Production 45,160 boe/d
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(Source: December presentation)

Outlook

Lightstream's 2014 capital plan of $525-575 million is expected to deliver an average daily production rate of 45,000 to 47,000 boepd and an exit production rate of 46,000 to 48,000 boepd (prior to disposition activity).

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(Source: November presentation)

Lightstream will be actively pursuing non-core asset sales in excess of $600 million over the next two years, with approximately $300 million targeted to be completed in 2014.

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(Source: November presentation)

Competition

Lightstream's competitors include Tourmaline Oil (OTCPK:TRMLF), Vermilion Energy (NYSE:VET), and Canadian Natural Resources (NYSE:CNQ). Here is a table comparing these companies.

Company LSTMF TRMLF VET CNQ
Market Cap: 953.15M 7.78B 5.83B 35.33B
Employees: N/A N/A N/A 5,970
Qtrly Rev Growth (yoy): 0.38 0.63 0.13 0.32
Revenue: 1.11B 636.80M 1.15B 16.20B
Gross Margin: N/A N/A 0.72 0.53
EBITDA: 798.87M 462.25M 825.70M 8.13B
Operating Margin: 0.24 0.20 0.43 0.19
Net Income: 93.65M 109.71M 288.46M 2.25B
EPS: -0.64 0.59 2.84 2.06
P/E: N/A 70.14 20.11 15.82
PEG (5 yr expected): N/A N/A N/A 0.71
P/S: 0.87 12.21 5.04 2.18
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Lightstream is trading at a lowest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
TRMLF 0 225,400
VET 0 2,000
CNQ 0 145,601
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Only Lightstream has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Lightstream and there have not been any insiders selling Lightstream during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

Lightstream has a total estimated asset value of $10.93 per share and the stock has a dividend yield of 9.1%. I believe the stock could be a good pick below the total estimated asset value based on the intensive insider buying.

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(Source: December presentation)

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