Canadian Insider Trades Highlighted by Oil and Gas Industry

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May 31, 2013
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In the past week, we saw an increase in Canadian insider buying coming from the energy, oil and gas, and retail industries. In insider selling, there was an increase coming from the financial sectors of the market as well as transportation and precious metals. Click here to see the complete list of Canadian insider trades.



Notable Insider Buys:

Zargon Oil and Gas (TSX:ZAR)

Zargon Oil and Gas reported five insider buys coming from two different insiders in the past couple of weeks. These buys came as the price of Zargon stock has been steadily decreasing.

President and CEO Craig Hansen made three different buys, adding a total of 107,000 shares in the price range of $6.16 to $6.22 per share. His transactions cost him a total of $448,557. Since his most recent buy, the price has dropped 0.97%. Hansen currently holds on to at least 385,605.

Director Geoffrey Merritt made two different buys, adding a total of 23,900 shares to his stake. His shares traded in the range of $6.18 to $6.23 per share. Merritt spent a total of $148,397 on these buys. Merritt now holds at least 25,894 shares of company stock. Since his most recent buy, the price per share of Zargon has decreased 1.94%.



Zargon Oil and Gas is engaged in the exploration, development and production of oil and natural gas in Canada and the U.S.

The analysis on Zargon Oil and Gas reports:

· The per share revenue has been in decline for the past five years.

· The company’s interest coverage is low.

· Zargon has issued $36.517 million of debt in the past three years.

· The price has hit its previous 10-year low of $6.13.

· The P/B ratio of the company is at a 10-year low P/B ratio of 0.79.

Zargon Oil and Gas has a market cap $183.727 million; its shares were traded at around $6.10 with a P/S ratio of 1.13. The company had an annual average earnings growth of 1.6% over the past ten years. The dividend yield of Zargon is 14.43%.

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The Peter Lynch Valuation Chart shows that Zargon Oil and Gas is currently overvalued.

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Mawer New Canada Fund currently holds on to 735,429 shares of Zargon Oil and Gas, representing 0.76% of their total portfolio.

Rona Inc. (TSX:RON)

Rona Inc. reported six insider buys in the past couple of weeks coming from five different insiders.

President and CEO Robert Sawyer made two different buys adding a total of 25,000 shares at an average price of $10.32. This cost Sawyer a total of $256,027. The price per share has increased 0.38% from his second increase.

VP of Finance and Investor Relations Stephane Milot bought 2,500 shares at $10.37 per share. This cost Milot a total of $25,925 The price per share has increased 0.96% since her buy.

Executive Chairman Robert Chevrier bought 25,000 shares of Rona for $10.34 per share. This transaction cost $258,393. The price per share of Rona has increased 1.3% since his transaction.

Director James Pantelidis bought 1,000 shares at $10.40 costing him a total of $10,400.

Senior VP Paul Jovian added 500 shares of Rona at $10.19 for a purchase price of $5,096.



Rona is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. It offers automotive products, building materials, decoration products, hand tools, hardware products, horticulture products, lighting and electricity products, paint supplies, plumbing equipment, power tools, houseware products, winter season products, gift cards as well as heating, ventilation and air conditioning (HVAC) products.

The analysis on Rona reports:

· The company’s revenue has been in decline for the past five years.

· The company’s dividend yield is at a one-year high.

· Their P/B ratio is close to a one-year low of 0.63.

· Their P/S ratio is close to a 10-year low of 0.24.

Rona has a market cap of $1.27 billion; its shares were traded at around $10.47 with a P/E ratio of 147.06 and P/S ratio of 0.26. The dividend yield of Rona stocks is 1.34%.

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The Signature Select Canadian Fund currently holds 283,209 shares of Rona Inc.

EnerCare (TSX:ECI)

EnerCare reported eight insider buys coming from four insiders in the past week.

Senior VP, General Counsel and Corporate Secretary John Toffoletto bought 2,100 shares at $9.14 per share. This cost him $19,194. Toffoletto now owns 6,500 shares of EnerCare. Since his buy the price per share has increased 3.28%.

CFO Evelyn Sutherland made four different buys, adding a total of 9,000 shares. She bought the shares in the price range of $9.13 to $9.22 for a total purchase price of $82,413. The price per share has increased approximately 3.4% from her buying price.

Director James Pantelidis bought 2,000 shares at $9.29 per share. This cost the director a total of $18,580. The price has increased 1.61% since his buy.

President and CEO John Macdonald made two different buys, adding a total of 1,500 shares. The shares traded in the range of $9.13 to $9.14 per share. This cost a total of $13,705. The price per share has increased approximately 3.32% from Macdonald’s buys.



EnerCare is the largest non-utility, independently-owned sub-metering company in Canada. The company, through its subsidiaries, owns residential and commercial water heaters, HVAC equipment, venting systems and other various assets. The company also provides services related to water heater, furnace and air conditioning maintenance, education and assistance.

The analysis on EnerCare reports:

· The gross margin has been in a long-term decline. The average rate of decline per year is 2.5%.

· The dividend yield is close to a five-year low.

EnerCare has a market cap of $552.288 million; its shares were traded at around $9.44 with a P/S ratio of 2.11. The dividend yield of EnerCare is 7.15%

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The Peter Lynch Chart shows that EnerCare is currently overvalued:

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There are currently no gurus that hold stake in EnerCare.

Notable Canadian Insider Sells:

Sun Life Financial (TSX:SLF)

This past week two different senior officers made five sells of their stake in Sun Life Financial.

Mark Saunders made two different sells, selling a total of 18,000 shares. He sold his shares at an average price of $30.25 per share. Saunders brought in $544,278 with these sells. Since his sells the price has increased 2.11%.

Westley Thompson made three different sells last week, selling a total of 188,423 shares of Sun Life. The shares traded at around $29.70 per share. This brought in $5,596,148 for the senior officer. Since his sell, the price per share has increased 4.07%.



Sun Life Financial is a financial services organization, offering a range of life and health insurance, savings, investment management, retirement and pension products and services to both individual and corporate customers.

The analysis on Sun Life Financial reports:

· The revenue has been in decline for the past five years.

· The price is close to a three-year high of $33.37.

· The P/S ratio is at a three-year high of 1.00.

The Peter Lynch Valuation shows that Sun Life Valuation is currently undervalued:

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Sun Life Financial has a market cap of $18.24 billion; its shares were traded at around $30.73 with a P/E ratio of 13.50 and P/S ratio of 1.03. The dividend yield of Sun Life Financial stocks is 4.69%.

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Enbridge Inc. (TSX:ENB)

Three insiders made six insider sells this last week. These buys came as the price per share neared and hit 10-year highs.

VP of Treasury and Tax Colin Gruending sold 14,400 shares at an average price of $48.87 per share. This brought him a total of $703,728. Since his sell the price per share has dropped 7.49%.

VP of Finance Narinder Kishinchandani made four sells, selling a total of 16,600 shares. These shares sold in the price range of $47.70 to $47.73 per share. He made $791,970 on these sells. Since his most recent sell, the price has dropped 5.22%.

Executive VP and CFO John Bird sold 40,000 shares this past week at $47.77 per share. This raked in $1,910,720 for the executive. Since his sell, the price per share has decreased 5.36%.



Enbridge’s main business activities are the transportation and distribution of crude oil and natural gas. The company’s activities are carried out through five business segments: Liquids Pipelines, Gas Distribution and Pipelines, Processing and Energy Services, Sponsored Investments and Corporate.

The analysis on Enbridge reports:

· The operating margin for the company has been in a five-year decline. The average rate of decline is 5.5%.

· Enbridge has issued $3.5 billion of debt over the past three years.

· The company has shown predictable revenue and earnings growth.

· The price is close to a 10-year high of $48.44 per share.

· The P/E and P/B ratios are close to 10-year highs of 65.2 and 5.72, respectively.

The Peter Lynch Analysis Chart shows that Enbridge is currently overvalued:

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Enbridge has a market cap of $39.37 billion; its shares were traded at around $45.93 with a P/E ratio of 60.98 and a P/S ratio of 1.36. The dividend yield of Enbridge is 2.60%. The company had an annual average earnings growth of 5.9% over the past ten years. GuruFocus rated Enbridge the business predictability rank of 4.5-star.

Mawer Canadian Equity Fund holds 906,166 shares of Enbridge stocks and Signature Select Canadian Fund currently owns 106,750 shares.

Canadian Pacific Railway (TSX:CP)

Two senior officers made sells of Canadian Pacific Railway this past week.

VP of Marketing and Sales Stephen Whitney sold 3,400 shares at an average price of $141.46 per share. This brought in $480,964 for Whitney. He now holds on to 1,500 shares of Canadian Pacific Railway. Since his sell, the price per share has decreased 1.83%.

Senior VP of Canadian Operations Guido De Ciccio sold 6,500 shares at an average price of $138.29 per share. This raked in $774,424 for the insider. He still owns 866 shares of company stock. Since his sell, the price per share has increased 0.42%.



Canadian Pacific Railway is a holding company whose subsidiaries operate railways in North America. The company’s primary operating subsidiary is the Canadian Pacific Railway Company (CPRC). CPRC is one of Canada’s oldest corporations, which has developed into a fully integrated and technologically advanced Class I railway providing rail and intermodal freight transportation services over a 14,700 mile network.

The analysis on Canadian Pacific Railway reports:

· The operating margin has been in a five-year decline. The average rate of decline is 6.3% per year.

· The P/E and P/B ratios are close to 10-year highs of 44.15 and 4.73, respectively.

· The dividend yield is close to a 10-year low.

The Peter Lynch Analysis Chart shows that Canadian Pacific Railway is currently overvalued:

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Canadian Pacific Railway has a market cap of $24.36 billion; its shares were traded at around $138.49 with a P/E ratio of 43.10 and P/S ratio of 4.15. The dividend yield of Canadian Pacific Railway stocks is 1.01%. The company had an annual average earnings growth of 1.9% over the past ten years.

There are 10 gurus that hold a stake in Canadian Pacific Railway.

You can view the complete list of Canadian Insider Trades here.

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