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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%.

Strategic Oil & Gas (OTCPK:SOGFF) engages in the exploration and development of petroleum and natural gas reserves in Western Canada.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Thomas ClaugusChairmanJan 174,867,00080,547,300 shares+6.4%
Shelina HirjiVPJan 3010,00010,000 sharesfrom 0 to 10,000
Gurpreet SawhneyCEOJan 28109,0001,199,810 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.

MonthInsider buying / sharesInsider selling / shares
January 20144,986,0000
December 201300
November 2013120,0000
October 2013326,00010,000
September 201322,432,1000
August 20132,268,5000
July 20133,480,30010,000
June 20132,302,20083,333
May 2013106,5000
April 2013143,50010,000
March 20138,000,0000
February 201300
January 20130158,000

There have been 44,165,100 shares purchased, and there have been 271,333 shares sold by insiders since January 2013.

Financials

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

Revenue$22.6 million
Funds from operations$4.9 million
Net loss$6.8 million
Net debt$81.6 million
Production3,510 boed

Outlook

Strategic's guidance is as follows:

Q4/2013FY2013Q1/2014FY2014
Production / boed2,8003,2003,7004,400-4,600

Strategic's shares plunged after the company released this guidance on January 17. The insiders started buying the shares after this plunge.

Competition

Strategic's competitors include Manitok Energy (OTC:MKRYF), and RMP Energy (OTCPK:OEXFF). Here is a table comparing these companies.

CompanySOGFFMKRYFOEXFF
Market Cap:132.83M161.78M584.13M
Qtrly Rev Growth (yoy):0.640.480.50
Revenue:64.00M57.41M114.26M
EBITDA:14.48M29.42M76.80M
Operating Margin:-0.260.100.18
Net Income:-18.73M2.93M-3.97M
EPS:-0.100.04-0.04
P/E:N/A51.24N/A
P/S:1.832.855.30

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.

CompanyInsider buying / sharesInsider selling / shares
MKRYF416,40025,000
OEXFF252,3851,296,250

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

Conclusion

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.

Source: Strategic Oil & Gas: 3 Different Insiders Have Purchased Shares This Year