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Canadian Insider Buys at 52-Week Lows

April 22, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
The following three companies reported insider buys at or near their 52-week low price. It is interesting to note these buys because they can help you find undervalued, small-cap stocks that are oftentimes overlooked by Wall Street (or in this case Toronto).

1. Crescent Point Energy (TSX:CPG)

Crescent Point Energy reported two directors buying as the price of CPG is near a 52-week low.

Director Kenney Cugnet made seven different transactions last week adding a total of 21,128 shares at an average price of $36.42 each. Cugnet spent $754,918 on these transactions

Director Paul Colborne added 12,500 shares in two different transactions. The shares traded for an average price of $37.20 each for a total transaction amount of $462,675.



The GuruFocus analysis reports that Crescent Point has issued $525.954 million worth of debt in the past three years. The company has also been in a 5-year decline. The average rate of decline is -14.1%. On the up side, the dividend yield, P/B Ratio and P/S Ratio are all close to a 3-year low.

Crescent Point is an oil and gas exploration, development and production company. The company is a conventional oil and gas producer with assets strategically focused in properties comprised of high quality, long life, operated, light and medium oil and natural gas reserves in Western Canada.

Signature Select Canadian Fund holds 210,950 shares of Crescent Point.

With its shares up 0.5%, Crescent Point trades at $35.85.

2. Temple Hotels Inc (TSX:TPH)

Temple Hotels has reported two insiders making buys this month as the price of the company drops nearer to its 52-week low. These two insiders have made a total of five buys adding 70,000 shares of the company’s stock.

Director Rodney Marlin made one buy adding 35,000 shares at $5.35 per share. His transaction amounted to $187,250.

President and CEO Arni C. Thorsteinson made four different buys amounting to 35,000 shares. The shares traded at an average $5.29 per share. His total amount for these transactions was $185,350.



These insider buys mark the first insider transactions for the company.

According to the analysis on Temple Hotels, the company’s per share revenue has been in decline for the past three years. Also, the interest coverage is really low. The company cannot cover its interest expense through its earnings. The dividend yield is close to a 2-year high and the P/S Ratio is close to a 52-week low.

The 10-year financials of Temple show that the company does not earn enough to cover its interest income/expense.

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TSX:TPH data by [url='http://www.gurufocus.com']GuruFocus.com[/url]

Temple Hotels is a Canadian-based hotel real estate company. They own hotel real estate in primary and secondary markets across Canada.

There are currently no gurus that hold stake in Temple Hotels.

With its shares up 0.19%, Temple Hotels trades at $5.30.

3. Liquor Stores (TSX:LIQ)

As the price of Liquor Stores nears a 52-week low, two different insiders are adding to their collection of company shares.

Director James Dinning bought 2,000 shares at $18.12 per share. This transaction cost him $36,240.

Director Henry Bereznicki made five different transactions adding 10,000 shares at an average price of $18.03.



These insider buys came as the price of Liquor Stores neared its 52-week low of $17.57.

The GuruFocus analysis of the company reports that Liquor Stores has been in decline over the past three years. The company has also issued $7.669 million of debt in the past three years. The analysis also determined that the payout ratio is too high.

The 10-year financials of Liquor Stores reports that the revenue growth is up 5.5% in the past year, but the free cash flow is down 36.1%. The revenue per share has been decreasing since 2009.

Liquor Stores is Canada’s largest private operator of retail liquor stores. The company currently operates or has interests in 236 retail liquor stores in Canada as well as in Alaska and Kentucky.

Liquor Stores is not currently held by any gurus.

With its shares up 0.11%, TSX:LIQ trades at $17.50.

To view all of Canada’s insider transactions, click here.

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  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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Rating: 4.5/5 (2 votes)

Comments

fox10
Fox10 - 1 year ago
Beware of reading anything into Arni Thorsteinson's purchases. I remember him buying thousands and thousands of his Lanesborough RE trust - all the way down from about 5-6 C$ towards 3, 2, 1. The stock is now at 0.73 and went almost bk in 2009. This guy is a clueless re speculator, imho.

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