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Summary

  • 4 insiders purchased Regal Lifestyle Communities stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • All 4 of these insiders increased their holdings by more than 10% each.

Regal Lifestyle Communities (OTC:RLIFF) owns and operates retirement living communities.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
Edward DatoDirectorJune 520,000Yes28,000 shares+250.0%
Jon HaganDirectorJune 55,000Yes55,000 shares+10.0%
Simon NyilassyCEOJune 534,400Yes314,200 shares+12.3%
Moray TawseDirectorJune 5392,100Yes2,157,563
shares
+22.2%

There have been 451,500 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a public offering.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
June 2014451,5000
May 201400
April 201400
March 201400
February 201400
January 201434,5300
December 201322,10077,000
November 201371,6610
October 20131,760,5630
September 201300
August 201300
July 201300
June 20137,6500
May 2013233,2000
April 201300
March 20138,5000
February 201300
January 201300

There have been 2,589,704 shares purchased and there have been 77,000 shares sold by insiders since January 2013.

Financials

Regal reported the first-quarter financial results on May 13 with the following highlights:

Operating revenueC$19.3 million ($17.7 million)
Net operating incomeC$7.4 million ($6.8 million)
CashC$14.4 million ($13.2 million)
Mortgage debtC$260 million ($238.5 million)
Book value$7.35 per share

The four insiders purchased their shares after these results.

On June 6, Regal closed a C$27 million ($24.8 million) public offering. This offering was arranged to partly fund a C$160 million ($146.8 million) acquisition of seven multi-unit retirement communities located in the Province of Québec.

Competition

Regal's competitors include Amica Mature Lifestyles (OTC:ACCKF), and Chartwell Retirement Residences (OTC:CWSRF). Here is a table comparing these companies.

CompanyRLIFFACCKFCWSRF
Market Cap:150.40M216.40M1.70B
Qtrly Rev Growth (yoy):0.420.080.04
Revenue:59.54M99.44M794.48M
EBITDA:17.42M29.48M224.76M
Operating Margin:0.070.100.09
Net Income:-4.43M-5.65M-23.06M
EPS:-0.22-0.18-0.13
P/S:2.532.182.14
P/B:0.991.693.89
Dividend Yield:9.3%5.5%7.6%

Regal has the highest dividend yield among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
ACCKF00
CWSRF1,8000

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

Conclusion

There have been four different insiders buying Regal, and there have not been any insiders selling Regal during the last 30 days. All four of these insiders increased their holdings by more than 10% each.

The four insiders purchased their shares at $7.02 (C$7.65). I believe Regal could be a good pick below $7.02 based on the intensive insider buying.

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(Source: Investor presentation)

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

Source: Regal Lifestyle Communities: 4 Different Insiders Have Purchased Shares This Month