Tuesday’s Insider Report: Chairman invests just under $1-million in this nearly oversold stock

Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships, including accounts they have control or direction over.

The list features insider transaction activity; it does not convey total ownership information as an insider may hold numerous accounts.

Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock’s valuation; perhaps an insider needs to raise money for personal reasons. An insider’s total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activity when I see multiple insiders trading a company’s shares or units.

Listed below are two stocks that have had recent buying activity reported by insiders.

Encana Corp. (ECA-T)

In a relative small transaction, on Aug. 1, Howard Mayson, who sits on the board of directors, acquired 5,000 shares at a cost per share of US$4.495, lifting his portfolio’s position to 50,488 shares. The cost of this investment totaled over US$22,000.

Petroshale Inc. (PSH-X)

On July 25, executive chairman Bruce Chernoff invested $990,000 in shares of this company. He purchased 1.5-million shares at a cost per share of 66 cents for an account in which he has indirect ownership (Hawthorne Energy Ltd.), increasing the account’s holdings to 48,647,203 shares.

The stock has a Relative Strength Index (RSI) value of 34. Generally, an RSI reading at or below 30 reflects an oversold condition.

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Listed below are two stocks that have had recent selling activity reported by insiders.

Alaris Royalty Corp. (AD-T)

On July 26, Amanda Frazer, vice-president of investments, divested 4,172 shares at a price per share of $21.16, reducing her account balance to 8,038 shares. Gross proceeds from this trade exceeded $88.000.

FirstService Crop. (FSV-T)

On July 29, chief financial officer of FirstService Residential Mike Natale sold 500 shares at a price per share of $138.50 with 4,500 shares remaining in his portfolio. Gross proceeds from the sale totaled over $69,000. FirstService Residential is a subsidiary of FirstService Corp.