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

Apr. 7.14 | About: Strategic Oil (SOGFF)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Thomas Claugus Chairman March 24-31 80,000,000 Yes 166,657,700 shares +92.3%
Barbara Joy VP March 31 60,000 Yes 114,738 shares +109.6%
Gurpreet Sawhney CEO March 31 415,200 Yes 1,702,010 shares +32.3%
Rick Skeith Director March 31 100,000 Yes 263,683 shares +61.1%
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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.

Month Insider buying / shares Insider selling / shares
March 2014 80,575,000 0
February 2014 587,000 0
January 2014 4,986,000 0
December 2013 0 0
November 2013 120,000 0
October 2013 326,000 10,000
September 2013 22,432,100 0
August 2013 2,268,500 0
July 2013 3,480,300 10,000
June 2013 2,302,200 83,333
May 2013 106,500 0
April 2013 143,500 10,000
March 2013 8,000,000 0
February 2013 0 0
January 2013 0 158,000
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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:

Revenue C$51.6 million
Funds from operations C$17.2 million
Net loss C$22.3 million
Net debt C$82.5 million
Production 3,270 boe/d
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On March 31, Strategic closed a C$50 million private placement.

Outlook

Strategic's 2014 guidance is as follows:

Production 4,400 boe/d
Cash flow C$37 million
Capital budget C$80 million
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(Source: Investor presentation)

Competition

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

Company SOGFF MKRYF OEXFF
Market Cap: 162.81M 167.97M 836.43M
Qtrly Rev Growth (yoy): -0.01 0.48 0.07
Revenue: 52.56M 57.41M 116.12M
EBITDA: 9.71M 29.42M 76.05M
Operating Margin: -0.36 0.10 0.17
Net Income: -22.74M 2.93M 10.65M
EPS: -0.11 0.04 0.09
P/E: N/A 53.20 76.32
P/S: 2.25 2.92 7.14
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Strategic has the lowest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
MKRYF 20,400 50,000
OEXFF 20,000 750,000
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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%.

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(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.

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(Source: Investor presentation)

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.

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