This past week in Canadian Insider Sells, we saw an increase in insider selling coming from the oil and natural gas sector of the market. The following three companies represent notable sells, to see the complete list of Canadian Insider Sells, click here.
Notable Insider Sells
1. Newalta Corp. (TSX:NAL)
On May 13, eight different insiders made sells of Newalta. Together the insiders sold a total of 154,500 shares at $13.69 per share. This brought in a combined $2,115,105 for the insiders.
The eight insiders consisted of Took Whitely (Senior VP of Business Development and General Counsel), Douglas Pecharsky (Senior VP of New Markets), Vance Milligan (Director), Bob MacDonald (Director), Peter Dugandzic (Executive VP), Terry Donaleshen (Senior VP), Alan Cadotte (Director/President and CEO) and Michael Borys (Executive VP and CFO).
Newalta is engaged in the recovery and recycling of saleable products from processing of wate materials. The company provides an integrated approach to waste management through the core areas of: Waste Processing, Recycling and Product Recovery, Onsite Services and Drill Site Service, Collection and Transportation and Disposal.
Newalta Corp has a market cap of $773.136 million; its shares were traded at around $14.77 with a P/E ratio of 14.70 and P/S ratio of 1.05. The dividend yield of Newalta is 2.71%. The company had an annual average earnings growth of 7.3% over the past five years.
The analysis on Newalta reports:
· The company’s gross margin has been in long-term decline. The average rate of decline is 5.4%.
· The per-share revenue has declined over the past 12 months.
· In the past three years Newalta has issued CAD188.464 million of debt.
· The P/S ratio is near a three-year high of 1.12.
· The operating margin has been expanding.
· The dividend yield is close to a three-year high.
The Mawer Canadian Equity Fund holds on to 488,078 shares of Newalta. The Mawer New Canada Fund holds on to 1,804,846 shares, making up 3.46% of the fund’s total assets managed.
2. Tourmaline Oil (TSX:TOU)
Director Clayton Riddle made a significant sell this past week as the price of Tourmaline Oil is sitting at a 3-year high. Riddle sold 100,000 of his shares in the company for $40.7242 per share. The director raked in $4,072,420 as a result of this sell.
Tourmaline Oil is a Canadian intermediate crude oil and natural gas exploration and production company focused on long-term growth through an aggressive exploration, development, production and acquisition program in the western Canadian Sedimentary Basin. The company has assembled an extensive undeveloped land position with a large, multi-year drilling inventory and operating control of important natural gas processing and transportation infrastructure in two core long-term growth areas.
Tourmaline Oil has a market cap of $7.48 billion; its shares were traded at around $41.38 with a P/E ratio of 106.38 and P/S ratio of 13.21. The company has seen a 36% earnings growth in the past 12 months as well as a 21.6% increase in revenue growth per share.
The warning signs for Tourmaline include:
- The price is at a three-year high.
- The P/B ratio is near a three-year high of 2.97.
- The P/S ratio is near a one-year high of 13.1.
- The company has issued CAD106.298 million of debt in the past 3 years.
The Leith Wheeler Canadian Equity holds 1,249,900 shares of Tourmaline as of December 2012. Signature Select Canadian Fund holds 133,800 shares as of Sept. 30, 2012.
3. Secure Energy Services (TSX:SES)
In the past week four insiders made significant sells of their shares in Secure Energy Services. These sells come as the price of SES is increasing daily.
The insiders sold a total of 140,000 shares at an average price of $13.48 per share. The four insiders brought in a total of $1,884,444 with their sells. Since their sells the price per share has increased in the range of 5.63% to 6.36%.
Secure Energy Services is an oil and gas corporation that operates through several wholly owned subsidiaries that are managed through two different segments. The first segment is the processing, recovery and disposal services and the second segment is the drilling services division.
Secure Energy Services has a market cap of $1.45 billion; its shares were traded around $14.26 with a P/E ratio of 40.82 and a P/S ratio of 1.36. The dividend yield of Secure Energy is 0.09%.
The analysis on Secure Energy reports:
· The company’s revenue has been in decline over the past three years.
· The price has exceeded its previous five-year high of $13.81.
· The company has issued CAD145.407 million of debt in the past three years.
· The company had operating loss over the past three years.
The Mawer New Canada Fund holds 977,841 shares of Secure Energy Services.
Click here to see the complete list of Canadian Insider Sells.
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