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%.
Strategic Oil & Gas (OTCPK:SOGFF) engages in the exploration and development of petroleum and natural gas reserves in Western Canada.
Insider buying during the last 30 days
Here is a table of Strategic's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Thomas Claugus||Chairman||Jan 17||4,867,000||80,547,300 shares||+6.4%|
|Shelina Hirji||VP||Jan 30||10,000||10,000 shares||from 0 to 10,000|
|Gurpreet Sawhney||CEO||Jan 28||109,000||1,199,810 shares||+10.0%|
There have been 4,986,000 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Strategic's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 44,165,100 shares purchased, and there have been 271,333 shares sold by insiders since January 2013.
Strategic reported the third-quarter financial results on November 14 with the following highlights:
|Funds from operations||$4.9 million|
|Net loss||$6.8 million|
|Net debt||$81.6 million|
Strategic's guidance is as follows:
|Production / boed||2,800||3,200||3,700||4,400-4,600|
Strategic's shares plunged after the company released this guidance on January 17. The insiders started buying the shares after this plunge.
|Qtrly Rev Growth (yoy):||0.64||0.48||0.50|
Strategic has the lowest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities during the last 12 months.
|Company||Insider buying / shares||Insider selling / shares|
Only Strategic has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Strategic, and there have not been any insiders selling Strategic during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Strategic has an insider ownership of 34.7%.
Strategic has a book value of $0.52 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.
Disclosure: I am long SOGFF. 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.