Manitok Energy Inc MKRYF

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[bullrush18]

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GM:MKRYF over the next 72 hours. (More...)

Editors' Note: This article covers one or more micro-cap stocks. Please be aware of the risks associated with these stocks.

In this article, I will feature one energy stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

1. The stock is purchased by three or more insiders within one month.
2. The stock is sold by no insiders in the month of intensive purchasing.
3. At least two purchasers increased their holdings by more than 10%.

Manitok Energy (GM:MKRYF) engages in the acquisition, exploration, development, and production of petroleum and natural gas reserves in Western Canada.

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Insider buying during the last 30 days

Here is a table of Manitok Energy's insider-trading activity during the last 30 days by insider.

Name	Title	Trade Date	Shares Purchased	Prospectus	Current Ownership	Increase In Shares
Bruno Geremia	Chairman	Nov 8-Dec 5	23,000	Yes and No	877,000 shares	+2.7%
Wilfred Gobert	Director	Nov 8-Dec 2	127,800	Yes and No	708,300 shares	+22.0%
Gregory Peterson	Director	Nov 8	4,100	Yes	179,812 shares	+2.3%
Tom Spoletini	Director	Nov 8	10,900	Yes	281,300 shares	+4.0%
Cameron Vouri	COO	Dec 3	25,000	No	125,000 shares	+25.0%

There have been 190,800 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Manitok Energy's insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
December 2013	133,000	0
November 2013	57,800	0
October 2013	0	0
September 2013	0	0
August 2013	0	10,000
July 2013	5,000	0
June 2013	0	15,000
May 2013	0	0
April 2013	0	0
March 2013	2,400	0
February 2013	0	0
January 2013	8,000	0

There have been 206,200 shares purchased and there have been 25,000 shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

Manitok Energy reported the third-quarter financial results on November 29 with the following highlights:

Revenue	$20.2 million
Funds from operations	$8.3 million
Net income	$0.3 million
Net debt	$21.4 million
Production	3,819 boe/d

Outlook

Manitok Energy's guidance for the fourth quarter is as follows:

Funds from operations	$13-$14 million
Capital expenditures, net	$46-$48 million
Net debt at year end	$32-$34 million

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(Source: December presentation)

Competition

Manitok Energy's competitors include RMP Energy (OTCPK:OEXFF), andNuVista Energy (GM:NUVSF). Here is a table comparing these companies.

Company	MKRYF	OEXFF	NUVSF
Market Cap:	138.29M	605.55M	825.65M
Qtrly Rev Growth (yoy):	2.27	0.50	0.01
Revenue:	52.64M	114.26M	188.25M
EBITDA:	32.79M	76.80M	53.84M
Operating Margin:	0.21	0.18	-0.16
Net Income:	4.08M	-3.97M	-74.17M
EPS:	0.05	-0.04	-0.65
P/E:	37.11	N/A	N/A
P/S:	2.63	5.30	4.39

Manitok Energy has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities this year.

Company	Insider buying / shares	Insider selling / shares
OEXFF	199,680	260,000
NUVSF	94,258	34,215

RMP Energy has also seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Manitok Energy and there have not been any insiders selling Manitok Energy during the last 30 days. Two of these five insiders increased their holdings by more than 10%. Manitok Energy has an insider ownership of 6.0%.

There are nine analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $3.64. Manitok Energy has abook value of $1.39 per share. I believe the stock could be a good pick around $1.50 based on the intensive insider buying.

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(Source: December presentation)

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