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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%.

Spyglass Resources Corp. (OTCQX:SGLRF) operates oil and natural gas properties in Alberta, Saskatchewan, and British Columbia.


(Click to enlarge)

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Daniel O'Byrne President Nov 20 20,000 311,997 shares +6.8%
Lynn Rannelli Senior Officer Dec 17 5,000 7,504 shares +199.7%
John Wright Director Nov 22-Dec 12 449,800 515,255 shares +687.2%

There have been 474,800 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
December 2013 254,800 0
November 2013 233,000 0
October 2013 0 221,345
September 2013 10,000 0
August 2013 476,100 0
July 2013 0 0
June 2013 10,000 6,607
May 2013 7,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0

There have been 990,900 shares purchased and there have been 227,952 shares sold by insiders this year.

Financials

Spyglass reported the third-quarter financial results on November 13 with the following highlights:

Revenue $63.5 million
Funds flow from operations $21.5 million
Net loss $1.4 million
Net debt $292.0 million
Production 16,445 boe/d


(Click to enlarge)

(Source: November presentation)

Outlook

Spyglass anticipates 2013 exit production to be 16,000 boe/d to 16,500 boe/d, with an oil and liquids weighting expected to increase to approximately 50 percent by year end.


(Click to enlarge)

(Source: November presentation)

Competition

Spyglass' competitors include Zargon Oil & Gas (OTCPK:ZARFF), and Twin Butte Energy (OTCPK:TBTEF). Here is a table comparing these companies.

Company SGLRF ZARFF TBTEF
Market Cap: 222.85M 246.40M 722.34M
Qtrly Rev Growth (yoy): 0.70 0.22 0.55
Revenue: 211.64M 133.60M 305.39M
EBITDA: 66.67M 56.09M 125.38M
Net Income: -26.87M -11.09M -33.62M
P/S: 1.07 1.82 2.37
P/B: 0.46 1.30 1.26
Dividend Yield: 14.5% 8.3% 8.5%

Spyglass has the highest dividend yield among these three companies.

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

Company Insider buying / shares Insider selling / shares
ZARFF 2,560 21,397
TBTEF 13,496 0

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

Conclusion

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


(Click to enlarge)

(Source: November presentation)

Spyglass' total proved net asset value is $3.72 per share. I believe Spyglass could be a good pick below $3.70 based on the intensive insider buying.


(Click to enlarge)

(Source: November presentation)

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