Seeking Alpha
Profile| Send Message|
( followers)  

Most energy related stocks have declined with the markets in the last several weeks. What makes the names below of interest is that these companies have reported insider buying lately. The fact that insiders are buying these names could be a good sign that these stocks are now undervalued and possibly close to a bottom.

I think exposure to oil is a must for investors in the long run, so it makes sense to watch these stocks and possibly follow the insiders in some of these stocks. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:

Magellan Petroleum Corporation (NASDAQ:MPET) is trading around $1.70. Magellan is an independent oil and gas company, based in Texas. These shares have traded in a range between $1.38 to $3.45 in the last 52 weeks. The 50 day moving average is $2.11 and the 200 day moving average is $2.25. You can see the recent insider buying here.

What Magellan insiders and other investors might be seeing: This stock has dropped from the $2.50 to $3 range, so it looks like insiders are doing some bargain hunting. Magellan reported a consolidated net loss of $84,275 ($.00 per share) on total revenue of $4.9 million for the fiscal third quarter ended March 31, 2011. Read about their latest quarter here. This company has a strong balance sheet and might be an interesting speculation at these low levels.

Kodiak Oil and Gas Corp. (NYSE:KOG) is trading at $5.75. These shares have traded in a range between $2.43 to $7.70 in the last 52 weeks. The 50 day moving average is $6.50 and the 200 day moving average is $5.51. Yahoo Finance lists the market cap for KOG to be about $1.1 billion. KOG is estimated to earn about 35 cents per share in 2011 and 83 cents in 2012. You can see the insider buying here.

What Kodiak insiders and other investors might be seeing: The CFO recently bought about 16,450 shares which totals nearly $100,000. However, there has been much larger insider selling just before this recent buy, so I am not impressed with this insider buying. If the stock were to trade down to about $5.50 or less, (which is around the 200 day moving average) then it could make sense to start buying.

Abraxas Petroleum Corporation (NASDAQ:AXAS) is trading at $3.16. These shares have traded in a range between $2.30 to $6.16 in the last 52 weeks. The 50 day moving average is $4.56 and the 200 day moving average is $4.13. Yahoo Finance shows a market cap of about $330 million and annual revenues of about $57 million. You can see the insider buying here.

What Abraxas insiders and other investors might be seeing: With the stock trading well below the 52 week high of $6.16, it looks like insiders are taking advantage of the recent market selloff.

GMX Resources, Inc. (GMXR) is trading at $4.72. GMXR is a oil and gas company based in Oklahoma. These shares have a 52 week range of $3.98 and $8.39. The 50 day moving average is $5.36, and the 200 day moving average is $5.03, so the shares are trading just below recent support levels. You can see the insider buying here.

What GMX Resources insiders and other investors might be seeing: Book value is stated at $4.06. Analysts see a big jump in revenues next year. The revenues estimates are seen jumping from around $135 million in 2011 and about $191 million in 2012. You can see those estimates here. This company holds interests in some high potential areas, including the Niobrara Formation and the Haynesville Formation.

Vantage Drilling (NYSEMKT:VTG) shares are trading at $1.86. Vantage is an offshore drilling company. These shares have traded in a range between 99 cents to $2.26 in the last 52 weeks. The 50 day moving average is $1.85 and the 200 day moving average is $1.81. Earnings estimates indicate a profit of 10 cents per share for 2011. You can see the insider buying here.

What Vantage insiders and other investors might be seeing: This company has substantial insider ownership and repeated insider buying. If these shares go a bit lower, I would start buying.

The data is sourced from Yahoo Finance and Insidercow.com.

Source: 5 Cheap Energy Stocks With Fresh Insider Buying