Christopher Furlong
Insiders do not get excited about average opportunities. Right now, executive buying is pulling back generally. Cheap stocks offering above-average opportunity are becoming harder to find, particularly given the recent attempt of the S&P/TSX composite to push above 12,000.
However, there are exceptions. AltaGas Income Trust enjoys a prospective distribution yield of just over 11 per cent. Based on our read of management's outlook in regulatory filings, that is expected to drop to a yield of about 6.5 per cent once the trust converts to a corporation later this year. If all goes well, that level would still be well above the average yield on stocks in the TSX composite. Meanwhile, over the past six months officers and directors have spent $4.8-million accumulating trust units through either the public market or option exercises.
Disclaimer:
Ted Dixon is CEO of INK Research www.inkresearch.com which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.
Graph Footnote:
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.