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In this article, I will feature one resource 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%.

Sprott Resource Corp. (OTCPK:SCPZF) invests and operates in oil and gas, energy, agriculture and agricultural nutrient projects, precious metals, and other natural resources.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Arthur EinavGeneral CounselJan 159,35012,904 shares+263.1%
Andrew StronachManaging DirectorJan 1516,00020,648 shares+344.2%
Steve YuzpeCEOJan 1530,00047,500 shares+171.4%

There have been 55,350 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
January 201455,3500
December 2013500
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201358,0000

There have been 113,400 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Sprott Resource reported the third-quarter financial results on November 14 with the following highlights:

Revenue$8.9 million
Net loss$8.4 million
Cash$7.3 million
Debt$57.6 million
NAV$3.86 per share

(Source: Investor presentation)

News

On January 13, Sprott Resource provided a business update with a new NAV estimate. As at December 31, 2013, Sprott Resource's management expects NAV to be in the range of $340 million or $3.43 per common share to $370 million or $3.74 per common share.

Peer analysis

Sprott Resource has been outperforming the benchmarks since September 2007.

(click to enlarge)

(Source: Investor presentation)

Conclusion

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

(click to enlarge)

(Source: Investor presentation)

Sprott Resource is trading below the estimated net asset value of $3.43-$3.74 per share. I have a long position in the stock currently.

(click to enlarge)

(Source: Investor presentation)

Source: Sprott Resource: 3 Different Insiders Have Purchased Shares This Year