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%.
Tamarack Valley Energy (OTC:TNEYF) engages in the identification, evaluation, and operation of resource plays in the Western Canadian sedimentary basin.
Insider buying during the last 30 days
Here is a table of Tamarack Valley Energy's insider-trading activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Prospectus||Current Ownership||Increase In Shares|
|Noralee Bradley||Senior Officer||Feb 14||11,500||Yes||64,031 shares||+21.9%|
|Ken Cruikshank||VP||Feb 19||2,500||Yes||112,420 shares||+2.3%|
|GMT Capital Corp.||10% Owner||Feb 10-12||500,800||No||6,428,200 shares||+8.4%|
|Niels Gundesen||VP||Feb 19||5,000||Yes||74,641 shares||+7.2%|
|Ron Hozjan||CFO||Feb 19||3,800||Yes||11,800 shares||+47.5%|
|Scott Reimond||VP||Feb 19||4,750||Yes||38,868 shares||+13.9%|
|Kevin Screen||VP||Feb 19||6,000||Yes||59,350 shares||+11.2%|
|Dean Setoguchi||Director||Feb 19||5,000||Yes||61,161 shares||+8.9%|
There have been 539,350 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Tamarack Valley Energy's insider-trading activity by calendar month.
Insider buying / shares
Insider selling / shares
There have been 658,905 shares purchased, and there have been 81,900 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.
Tamarack Valley Energy reported the third-quarter financial results on November 15 with the following highlights:
|Funds from operations||$10.3 million|
|Net income||$3.7 million|
|Net debt||$57.1 million|
On February 19, Tamarack Valley Energy closed a $60.2 million financing.
On January 28, Tamarack Valley Energy announced that it had surpassed its 2013 average production and 2013 exit production guidance as a result of its continued success in the Cardium and Viking. Based on field production estimates for December 2013, the company averaged 4,718 boe/d (approximately 62% liquids), exceeding its exit production guidance rate of 4,200 to 4,300 boe/d.
Tamarack Valley Energy's 2014 guidance is as follows:
- 2014 estimate average production rate of 5,300 to 5,500 boe/d
- 2014 estimate exit production rate of 6,500 to 6,700 boe/d (60% liquids)
- Anticipated cash flow of $57 to $59 million
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||0.71||0.64||0.48|
Tamarack Valley Energy's market cap has been adjusted to the February offering. Tamarack Valley Energy sold 14,000,000 shares at the offering. As of February 25, Tamarack Valley Energy had 60,170,000 shares outstanding, which gives the company a market cap of $252.29 million. Tamarack Valley Energy has the fastest revenue growth among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Strategic Oil & Gas has also seen intensive insider buying during the last 30 days.
There have been eight different insiders buying Tamarack Valley Energy, and there have not been any insiders selling Tamarack Valley Energy during the last 30 days. Four of these eight insiders increased their holdings by more than 10%. Tamarack Valley Energy's management and board own 7% of the company.
(Source: Investor presentation)
The insiders purchased their shares at $3.91 (C$4.30) in the February offering. I believe Tamarack Valley Energy could be a good pick at $3.90 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.