Conifex Timber: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Jun.15.14 | About: Conifex Timber (CFXTF)

Summary

3 insiders purchased Conifex stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 3 insiders increased their holdings by more than 10%.

Conifex Timber (OTC:CFXTF) is a softwood forest products company operating in the Northern Interior region of British Columbia.
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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Michael Costello Director June 10 1,000 11,500 shares +9.5%
Adam Infanti VP, Finance May 29 1,112 6,561
shares
+20.4%
Hans Thur SVP May 13-26 10,000 19,000 shares +111.1%
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There have been 12,112 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
June 2014 1,000 0
May 2014 11,112 0
April 2014 0 0
March 2014 1,000 0
February 2014 5,000 0
January 2014 0 0
December 2013 0 0
November 2013 3,900 0
October 2013 0 0
September 2013 0 0
August 2013 1,478 0
July 2013 0 0
June 2013 1,000 0
May 2013 1,000 0
April 2013 0 0
March 2013 600 0
February 2013 0 0
January 2013 0 0
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There have been 26,090 shares purchased and there have been zero shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Conifex reported the first-quarter financial results on May 11 with the following highlights:

Revenue C$67.2 million ($61.9 million)
Net income C$1.6 million ($1.5 million)
Net debt C$87.1 million ($80.3 million)
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The three insiders purchased their shares after these results.

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(Source: Investor presentation)

Outlook

Conifex expects that the momentum established in 2013 in terms of increasing production volumes and expanding profit margins will continue through the balance of 2014.

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(Source: Investor presentation)

Competition

Conifex's competitors include Canfor (OTCPK:CFPZF). Here is a table comparing these two companies.

Company CFXTF CFPZF
Market Cap: 140.28M 3.02B
Qtrly Rev Growth (yoy): 0.01 -0.06
Revenue: 240.18M 2.88B
EBITDA: 16.87M 468.10M
Net Income: 4.60M 194.27M
P/E: 31.60 15.76
P/S: 0.58 1.05
P/B: 1.28 2.35
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Conifex has a lower P/S ratio than Canfor. Only Conifex has seen insider buying this year.

Conclusion

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

The three insiders purchased their shares at prices ranging from $6.95 (C$7.54) to $7.91 (C$8.58). I believe Conifex could be a good pick below $7.91 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 CFXTF 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.