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:
- 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%.
Donnycreek Energy (OTCPK:DONYF) operates as an oil and natural gas exploration and production company in Canada.
Insider buying during the last 30 days
Here is a table of Donnycreek's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Public Offering||Current Ownership||Increase In Shares|
|Randy Kwasnicia||Director||Dec 16||200,000||Yes||1,218,537 shares||+19.6%|
|John Marsh||Senior Officer||Dec 16||10,600||Yes||35,600 shares||+42.4%|
|Clayton Riddell||10% Owner||Dec 16||395,400||Yes||1,957,900 shares||+25.3%|
|Murray Scalf||COO||Dec 16||37,769||Yes||1,014,669 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.
|Month||Insider buying / shares||Insider selling / shares|
There have been 1,888,869 shares purchased and there have been 28,000 shares sold by insiders this year.
Donnycreek reported the fiscal 2013 full-year, which ended July 31, financial results on November 15 with the following highlights:
|Funds flow from operations||$2.5 million|
|Net loss||$1.3 million|
On December 16, Donnycreek closed a $8.0 million financing.
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.
|Qtrly Rev Growth (yoy):||15.06||1.40||0.99|
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.
|Company||Insider buying / shares||Insider selling / shares|
Only Donnycreek has seen intensive insider buying during the last 30 days.
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.
(Source: November presentation)