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Insiders Are Buying Arsenal Energy

July 10, 2014 | About:
maarnio

maarnio

2 followers

One energy stock has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

- The stock is purchased by three or more insiders within one month.

- The stock is sold by no insiders in the month of intensive purchasing.

- At least two purchasers increase their holdings by more than 10%.

Arsenal Energy (AEYIF) is engaged in the exploration, development, and production of oil and natural gas in the Western Canadian Sedimentary basin in Canada and Williston basin in the United States.

nimetön.png

(Source: Investor presentation)

Insider Buying During the Last 30 Days

Here is a table of Arsenal’s insider activity during the last 30 days.

Name

Title

Trade Date

Shares Purchased

Prospectus

Current Ownership

Increase In Shares

Ron Forth

VP

June 30

2,139

Yes

170,450 shares

+1.3%

Paul Lawrence

CFO

July 2

2,000

Yes

53,568 shares

+3.9%

Bruce Mitchell

10% Owner

June 11-July 9

226,500

Yes & No

2,272,809 shares

+11.1%

Gjoa Taylor

VP

July 2

2,000

Yes

15,195 shares

+15.2%

There have been 232,639 shares purchased by insiders during the last 30 days. Most of these shares were purchased pursuant to a bought deal financing.

Insider Buying by Calendar Month

Here is a table of Arsenal’s insider activity by calendar month.

Month

Insider buying / shares

Insider selling / shares

July 2014

107,800

0

June 2014

124,839

0

May 2014

172,700

12,100

April 2014

5,000

0

March 2014

8,200

5,000

February 2014

0

0

January 2014

25,600

0

December 2013

15,000

0

November 2013

0

5,000

October 2013

3,600

0

September 2013

0

0

August 2013

0

0

July 2013

20,150

0

June 2013

9,900

0

May 2013

59,800

0

April 2013

37,450

0

March 2013

9,150

0

February 2013

29,850

0

January 2013

45,962

0

(Note: The table doesn't include shares acquired or disposed pursuant to a purchase/ownership plan)

(Note: Arsenal had a 10 for one share consolidation on August 6, 2013. All the numbers are split adjusted)

There have been 675,001 shares purchased and there have been 22,100 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Arsenal reported the first-quarter financial results on May 6 with the following highlights:

Revenue

C$19.2 million

Funds from operations

C$11.1 million

Net income

C$2.0 million

Cash

C$3.2 million

Debt

C$74.3 million

Production

4,108 boe/d

Arsenal closed a C$7.5 million private placement on July 3.

News

Arsenal’s production averaged approximately 4,700 boe/d in June.

Outlook

Arsenal’s 2014 guidance is as follows:

Production

4,400 boe/d

Funds from operations

C$50.0 million

CapEx

C$44.0 million

nimetön.png

(Source: Investor presentation)

Competition

Arsenal has a very low payout ratio compared to its peers.

nimetön.png

(Source: Investor presentation)

Conclusion

There have been four different insiders buying Arsenal and there have not been any insiders selling Arsenal during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Arsenal has an insider ownership of 28%.

nimetön.png

(Source: Investor presentation)

The four insiders purchased their shares at prices ranging from $7.15 (C$7.62) to $8.78 (C$9.35). I believe Arsenal could be a good pick below $8.78 based on the intensive insider buying.

nimetön.png

(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned.

About the author:

maarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

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