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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.
(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Michael CostelloDirectorJune 101,00011,500 shares+9.5%
Adam InfantiVP, FinanceMay 291,1126,561
shares
+20.4%
Hans ThurSVPMay 13-2610,00019,000 shares+111.1%

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.

MonthInsider buying / sharesInsider selling / shares
June 20141,0000
May 201411,1120
April 201400
March 20141,0000
February 20145,0000
January 201400
December 201300
November 20133,9000
October 201300
September 201300
August 20131,4780
July 201300
June 20131,0000
May 20131,0000
April 201300
March 20136000
February 201300
January 201300

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:

RevenueC$67.2 million ($61.9 million)
Net incomeC$1.6 million ($1.5 million)
Net debtC$87.1 million ($80.3 million)

The three insiders purchased their shares after these results.

(click to enlarge)

(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.

(click to enlarge)

(Source: Investor presentation)

Competition

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

CompanyCFXTFCFPZF
Market Cap:140.28M3.02B
Qtrly Rev Growth (yoy):0.01-0.06
Revenue:240.18M2.88B
EBITDA:16.87M468.10M
Net Income:4.60M194.27M
P/E:31.6015.76
P/S:0.581.05
P/B:1.282.35

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.

(click to enlarge)

(Source: Investor presentation)

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