TRILOGY ENERGY CORP. T.TET

Article About Insider Buying In Energy Stocks-TET is Tops

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Insiders have started to scoop up energy stocks (RTGAM) Ahmad Hathout Conviction in a rebound in the energy sector is returning among corporate insiders, underscoring the potential value plays that exist in the beaten-down sector. The basic signal that were getting is that value is back in relation to the risks, said Ted Dixon, chief executive officer of INK Research, which monitors legal security transitions among officers and directors within their own businesses. Weve seen a good healthy amount of insider activity in this sell-off, so thats encouraging for those looking for value opportunities in the energy space. INK Research found that for every stock with insider selling, there were four stocks with key insider buying, over the past 30 days. The buying frenzy picked up over the past couple of weeks, according to Mr. Dixon. The last time it was this high was in mid-March, amid a short and slight recovery in the energy sector, he noted. A year ago, there were more sellers than buyers, based on INKs 30-day indicator. Insiders are getting more confident that perhaps things are getting a little if not oversold certainly more aligned with longer-term fundamentals from a valuation perspective, Mr. Dixon said. For long-term value investors, there are some encouraging signs. Companies that top the insider buying list by dollar amount include Granite Oil Corp., Tourmaline Oil Corp., Boulder Energy Ltd. and Trilogy Energy Corp. Granite Oil and Boulder Energy were created out of a split in May of Calgary-based junior producer DeeThree Exploration Ltd. Clayton Riddell, the billionaire founder of Paramount Resources Ltd., is among the big names buying into his empire. Mr. Riddell has purchased 300,000 shares in Trilogy Energy and 100,000 shares in Tourmaline Oil, according to Mr. Dixon. Michael Dilger, a director of Trilogy, also bought into Trilogy, Tourmaline CEO Mike Rose bought into Tourmaline, while Thomas Claugus, director and CEO of GMT Capital, bought into Granite Oil. When you get that kind of multiple oil patch player buying, theyre indicating possible underpricing, Mr. Dixon said. While this insider buying activity may indicate renewed hope, Mr. Dixon cautions that this is primarily contrarian investing. We are unfortunately looking at value situations as opposed to growth situations. The question is, Is there enough value to entice people into the sector right now? And insiders are indicating that value has returned again.