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Summary

  • Four insiders purchased Strategic stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • All four of these insiders 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 activity during the last 30 days.

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
Thomas ClaugusChairmanMarch 24-3180,000,000Yes166,657,700 shares+92.3%
Barbara JoyVPMarch 3160,000Yes114,738 shares+109.6%
Gurpreet SawhneyCEOMarch 31415,200Yes1,702,010 shares+32.3%
Rick SkeithDirectorMarch 31100,000Yes263,683 shares+61.1%

There have been 80,575,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a private placement.

Insider buying by calendar month

Here is a table of Strategic's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201480,575,0000
February 2014587,0000
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 125,327,100 shares purchased, and there have been 271,333 shares sold by insiders since January 2013. The month of March 2014 has seen the most insider buying.

Financials

Strategic reported the full-year 2013 financial results on March 31 with the following highlights:

RevenueC$51.6 million
Funds from operationsC$17.2 million
Net lossC$22.3 million
Net debtC$82.5 million
Production3,270 boe/d

On March 31, Strategic closed a C$50 million private placement.

Outlook

Strategic's 2014 guidance is as follows:

Production4,400 boe/d
Cash flowC$37 million
Capital budgetC$80 million

(click to enlarge)

(Source: Investor presentation)

Competition

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

CompanySOGFFMKRYFOEXFF
Market Cap:162.81M167.97M836.43M
Qtrly Rev Growth (yoy):-0.010.480.07
Revenue:52.56M57.41M116.12M
EBITDA:9.71M29.42M76.05M
Operating Margin:-0.360.100.17
Net Income:-22.74M2.93M10.65M
EPS:-0.110.040.09
P/E:N/A53.2076.32
P/S:2.252.927.14

Strategic has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
MKRYF20,40050,000
OEXFF20,000750,000

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

Conclusion

There have been four different insiders buying Strategic, and there have not been any insiders selling Strategic during the last 30 days. All four of these insiders increased their holdings by more than 10%. Strategic has an insider ownership of 46%.

(click to enlarge)

(Source: Investor presentation)

The four insiders purchased their shares at $0.45 (C$0.50). I believe Strategic could be a good pick below $0.45 based on the intensive insider buying.

(click to enlarge)

(Source: Investor presentation)

Editor's 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.

Source: Strategic Oil And Gas: 4 Different Insiders Have Purchased Shares During The Last 30 Days