Zargon Oil and Gas (TSX:ZAR)
As Zargon’s share prices continue to dwindle downward, the insiders of the company continue to increase their stake in the company. This is the fourth time that Zargon has wound up in the highlighted Canadian insider trades updates, resulting from an insider buying trend began on May 17 and is still continuing. Last week, two insiders reported three insider buys which brought in 43,000 shares of their stock.
On June 4 President and CEO Craig Hansen made two different buys adding a total of 33,000 shares to his holdings. These shares traded at an average price of $6.11 for a total transaction amount of $199,690. Since his most recent buy, the price per share has increased 1.32%. Hansen now holds nearly 500,000 shares of his company’s stock.
Also on June 4 Vice President of Corporate Development Brian Kergan bought a total of 10,000 shares of Zargon at an average price of $6.06 per share. This transaction cost him a total of $60,600. Since his buy, the price per share has increased approximately 1.65%. Kergan now owns approximately 37,924 shares of his company’s stock.
As the chart above shows, the number of insiders buying has increased as the share price has dropped beneath its previous three-year low.
Zargon Oil and Gas is engaged in the exploration, development and production of oil and natural gas in Canada and the U.S. The company is currently pursuing high-graded oil exploitation projects in Alberta and the Hamilton Lake.
The analysis on Zargon reports:
· The revenue has been in decline for the past five years.
· The price is near a 10-year low of $6.05.
· The company has issued CAD$46.988 in the past three years.
· The P/B and P/S ratios are at 10-year lows of 0.79 and 1.07, respectively.
Zargon Oil and Gas’ P/S and P/B ratio:
The company’s price and P/E ratio:
According to the Peter Lynch Valuation Chart, Zargon appears to be overvalued:
Zargon Oil and Gas has a market cap of $183.727 million; its shares were traded at around $6.16 with a P/S ratio of 1.38. The dividend yield of Zargon is 14.29%. The company had an annual average earnings growth of 1.6% over the past 10 years.
The Mawer New Canada Fund holds 735,429 shares of Zargon as of December 2012.
Legacy Oil + Gas (TSX:LEG)
In the past week Director Paul Colborne has made the most significant insider transactions. The director made seven different buys into Legacy on June 3 and one more on June 4. Colborne added a total of 8,400 shares that traded in the price range of $5.51 to $5.59. The director now holds more than 663,000 shares of Legacy Oil and Gas.
Towards the end of May two other directors made buys into Zargon. Randal Brockway added a total of 20,000 shares to his stake. These shares traded at $5.65 per share. The director now holds on to over 186,000 shares of company stock. Since his last buy the price per share has dropped 9.56%. Director James Pasieka also purchased 71,196 shares in the price range of $5.56 to $5.65 per share. As of his last buy, he owns 173,975 shares and since then the price per share has decreased 8.59%.
The company has seen increased insider buying as the price of Legacy’s stock has dropped to a three-year low.
Legacy Oil + Gas Inc. is an intermediate oil and natural gas company committed to cost-effective growth of light oil reserves and production in western Canada. The Company is strategically focused on both a geographic and commodity basis and will maintain prudent fiscal management.
The company recently reported the following recent accomplishments:
· Drilled 43 gross light oil wells, with a 98% success rate.
· Reduced operating expenses from $15.36 Boe to $13.88 BOE for the first quarter of 2013.
· Increased funds from operations from $60.6 million ($0.42 per share) in the first quarter of 2012 to $62.1 million ($0.43 per share) in the first quarter of 2013.
· Increased average production of 16,370 Boe per day to 17,451 Boe per day, representing a 7% increase.
Legacy Oil + Gas has a market cap of $842.657 million; its shares were traded at around $5.11 with a P/E ratio of 81.97 and a P/S ratio of 1.69. The company had an annual average earnings growth of 9.2% over the past five years.
The company’s P/B and P/S ratio:
The analysis on Legacy Oil + Gas reports:
· The gross margin and operating margin have been in a five-year decline.
· The company has issued CAD140.508 million of debt in the past three years.
· The P/B ratio is close to a three-year low of 0.51.
· The P/S ratio is close to a three-year of 1.7.
There are currently five gurus that hold stake in Legacy Oil + Gas. Click here to see these gurus’ holding history of Legacy.
Husky Energy (TSX:HSE)
In the past week, three insiders have made four buys into Husky Energy.
Alister Cowan made two buys on June 4, adding 7,000 shares to his stake. He bought these shares at an average price of $29.09 per share. Since his most recent buy, the price has dropped an additional 3.34%.
Director Frederick Si-Hang Ma bought 10,000 shares at $29.74 per share. This cost the director a total of $297,400. Since his buy, the price per share has decreased 5.48%.
Asim Ghosh added 8,300 shares at $29.74 per share. This cost Ghosh a total of $246,855; the insider now owns a total of 60,925 shares. Since his buy, the price per share has dropped 5.49%.
Husky Energy is a Canadian integrated oil and gas company. The company operates worldwide with Upstream, Midstream and Downstream business segments. Husky is active in the exploration and production of heavy oil, light crude oil, natural gas and natural gas liquids.
Husky Energy recently reported that they had received approval for a development plan amendment for the South White Rose field, the third satellite extension at the White Rose field in the Atlantic Region. The approval marks the latest step in the company's strategy to maintain stable, high-netback production from the region while laying the foundation for the next stage of growth.
Husky Energy has a market cap of $28.09 billion; its shares were traded at around $28.11 with a P/E ratio of 14.01 and a P/S ratio of 1.24. The dividend yield of Husky Energy stocks is 4.27%. The company had an annual average earnings growth of 5.6% over the past 10 years.
The analysis of Husky Energy reports:
· The company’s gross margin has been in decline with an average rate of decline per year of 6%.
· The revenue has been in decline for the past year.
· The operating margin has been in a five-year decline. The average rate of decline per year is 13.7%.
Husky Energy’s price and P/E ratio:
The company’s P/S and P/B ratios:
According to the Peter Lynch Valuation Chart Husky Energy appears to be fully valued:
There are currently no gurus that hold stake in Husky Energy.
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