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Rougemont
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I am an independent trader and investor seeking opportunities in energy, deep value, distressed and turnaround plays. I also invest in growth when I see a sustainable long term trend in certain stocks or sectors. I may occasionally send stock ideas out on Twitter, if exceptional opportunities... More
  • 4 Oil Industry Stocks With New Insider Buying 0 comments
    Jun 20, 2011 6:33 PM | about stocks: LIME, GSXN, EPM, ATPAQ
    Oil and gas stocks have declined with the markets in the last several weeks.  What makes the names below of interest is that these companies have reported recent insider buying.  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 energy 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:  
     
    ATP Oil and Gas Corp. (ATPG) is trading at $15.54.  ATPG is an independent oil and gas company, based in Texas.  These shares have traded in a range between $8.85 to $21.40 in the last 52 weeks.  The 50 day moving average is $16.97 and the 200 day moving average is $16.25.  The CEO recently bought about 65,000 shares, at $15.38 per share which totals nearly $1 million.  You can see the insider buying here:  www.insidercow.com/history/company.jsp
     
    What ATPG insiders and other investors might be seeing:  Analysts are expecting substantial growth from this company and see revenues growing for this company next year.
     
     
    Evolution Petroleum Corporation (NYSEMKT:EPM) are trading at $7.08.  Evolution is an independent oil and gas company, based in Texas.  These shares have traded in a range between $4.10 to $8.80 in the last 52 weeks.  The 50 day moving average is $7.51 and the 200 day moving average is $6.82.  An insider bought about 7,200 shares at $7.16 per share.  You can see the insider buying here:   www.insidercow.com/history/insider.jsp 
     
    What Evolution insiders and other investors might be seeing:  With the stock trading well below the 52 week high of $8.80, it looks like insiders are taking advantage of the recent market sell off.  However, the amount of revenue generated by this company is too little to be of interest for me in terms of investment.
     
     
    Gasco Energy, Inc. (GSX) is trading at 24 cents.  Gasco is an oil and gas company based in Colorado.  These shares have a 52 week range of 20 cents and 63 cents.  The 50 day moving average is about 38 cents, and the 200 day moving average is about 36 cents, so the shares are trading well below recent support levels.  One insider (a director) bought about 416,667 shares at 24 cents per share.  You can see the insider buying here:  www.insidercow.com/history/company.jsp
     
    What Gasco insiders and other investors might be seeing:   Gasco recently announced it was raising capital and sold around 25 million new shares (and warrants) at about 24 cents per share.  You can read about that deal here:  finance.yahoo.com/news/Gasco-Energy-Prices-Public-prnews-1423746679.html  This dilution is likely to keep pressure on the stock for awhile.  It is also unfortunate that management timed this so poorly since the capital raise would have been much better to to when the stock was about double only several weeks ago.  Dilution is never great news, especially at or near 52 week lows.  If these shares drop below 20 cents, they might be an interesting speculation.
     
     
    Lime Energy (NASDAQ:LIME) shares are trading at $4.67.  Lime is an energy engineering and consulting company, based in Illinois.  These shares have traded in a range between $3.02 to $5.50 in the last 52 weeks.  The 50 day moving average is $4.53 and the 200 day moving average is $4.34.   Earnings estimates indicate a loss of 2 cents per share for 2011 and a profit of 21 cents for 2012.  A director recently bought about 14,000 shares at $4.48 per share.  You can see the insider buying here: www.insidercow.com/history/company.jsp 
     
    What Lime Energy insiders and other investors might be seeing:  With energy prices rising, there should be strong demand for companies like Lime that can reduce energy expenses.  This company has substantial insider ownership and repeated insider buying.  However, the stock recently spiked up, so I would wait for pullbacks before considering a purchase.
     
     
    The data is sourced from Yahoo Finance and Insidercow.com.  The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.


    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ATPG over the next 72 hours.
    Stocks: LIME, GSXN, EPM, ATPAQ
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