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Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. 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%.

Donnycreek Energy (OTCPK:DONYF) operates as an oil and natural gas exploration and production company in Canada.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
Randy KwasniciaDirectorDec 16200,000Yes1,218,537 shares+19.6%
John MarshSenior OfficerDec 1610,600Yes35,600 shares+42.4%
Clayton Riddell10% OwnerDec 16395,400Yes1,957,900 shares+25.3%
Murray ScalfCOODec 1637,769Yes1,014,669 shares+3.9%

There have been 643,769 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
December 2013643,7690
November 2013028,000
October 201300
September 201300
August 201300
July 20131,217,0000
June 201300
May 201300
April 201328,1000
March 201300
February 201300
January 201300

There have been 1,888,869 shares purchased and there have been 28,000 shares sold by insiders this year.

Financials

Donnycreek reported the fiscal 2013 full-year, which ended July 31, financial results on November 15 with the following highlights:

Revenue$4.8 million
Funds flow from operations$2.5 million
Net loss$1.3 million
Cash$30.0 million
Production212 boe/d

On December 16, Donnycreek closed a $8.0 million financing.

Outlook

Donnycreek's capital budget for fiscal 2014 allocates approximately $38.9 million to its Kakwa and Wapiti properties which are expected to be funded from cash on hand and funds flow from operations.

Competition

Donnycreek's competitors include Renegade Petroleum (OTC:RPTTF), and Surge Energy (OTCPK:ZPTAF). Here is a table comparing these companies.

CompanyDONYFRPTTFZPTAF
Market Cap:104.74M174.16M773.83M
Qtrly Rev Growth (yoy):15.061.400.99
Revenue:4.84M178.72M206.13M
EBITDA:579.90K79.86M113.24M
Net Income:-1.33M-52.71M-76.67M
P/S:20.300.963.73
P/B:1.580.371.28

Donnycreek has the fastest revenue growth among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
RPTTF00
ZPTAF162,66763,656

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

Conclusion

There have been four different insiders buying Donnycreek and there have not been any insiders selling Donnycreek during the last 30 days. Three of these four insiders increased their holdings by more than 10%. Donnycreek has an insider ownership of 12%.

Donnycreek has an estimated net asset value of $4.09 per share. The insiders paid $2.40 for their shares at the December offering. I believe the stock could be a good pick below $2.40 based on the intensive insider buying.

(click to enlarge)

(Source: November presentation)

Source: Donnycreek Energy: 4 Different Insiders Have Purchased Shares This Month