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

Jun.10.14 | About: Regal Lifestyle (RLIFF)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Public Offering Current Ownership Increase In Shares
Edward Dato Director June 5 20,000 Yes 28,000 shares +250.0%
Jon Hagan Director June 5 5,000 Yes 55,000 shares +10.0%
Simon Nyilassy CEO June 5 34,400 Yes 314,200 shares +12.3%
Moray Tawse Director June 5 392,100 Yes 2,157,563
shares
+22.2%
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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.

Month Insider buying / shares Insider selling / shares
June 2014 451,500 0
May 2014 0 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 34,530 0
December 2013 22,100 77,000
November 2013 71,661 0
October 2013 1,760,563 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 7,650 0
May 2013 233,200 0
April 2013 0 0
March 2013 8,500 0
February 2013 0 0
January 2013 0 0
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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 revenue C$19.3 million ($17.7 million)
Net operating income C$7.4 million ($6.8 million)
Cash C$14.4 million ($13.2 million)
Mortgage debt C$260 million ($238.5 million)
Book value $7.35 per share
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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.

Company RLIFF ACCKF CWSRF
Market Cap: 150.40M 216.40M 1.70B
Qtrly Rev Growth (yoy): 0.42 0.08 0.04
Revenue: 59.54M 99.44M 794.48M
EBITDA: 17.42M 29.48M 224.76M
Operating Margin: 0.07 0.10 0.09
Net Income: -4.43M -5.65M -23.06M
EPS: -0.22 -0.18 -0.13
P/S: 2.53 2.18 2.14
P/B: 0.99 1.69 3.89
Dividend Yield: 9.3% 5.5% 7.6%
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Regal has the highest dividend yield among these three companies.

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

Company Insider buying / shares Insider selling / shares
ACCKF 0 0
CWSRF 1,800 0
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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)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in RLIFF over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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