Weekly Insiders #2
Insider purchases, buybacks and M&A - 27/02/23 - 05/03/23
Good morning Micro Investors!
Welcome to Weekly Insiders, a report of the insider movements in the micro cap universe. Insider buys, share buybacks and merge and acquisition transactions are often a sign of management real forecast of company future and can be indicators of special situations.
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Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
-Peter Lynch
Summary
This week's buybacks are highly concentrated in two sectors, aquaculture and O&G. On the one hand we have companies related to salmon and cod producers from Norway, and on the other hand the case of $BMK, which provides services and accessory products for sustainable aquaculture.
The aquaculture industry has moderate long-term growth prospects, and the industry is undergoing a process of transformation towards more sustainable production models. It is worth analyzing the specific cases of salmon and cod production, because it seems that their insiders think that companies are trading cheap.
In the case of O&G, the undervaluation certainly seems to be in offshore platforms, this market has been underinvested for the last decade and european insiders seem to believe that this will change soon. If we go back to a high investment cycle (which seems to be the case) these companies could be grossly undervalued.
Soon, in this newsletter we will analyze the O&G sector and offshore wind energy, do not miss out.
From the others category I really like the case for $AURA, a real state firm trading at 0.6x BV, where insiders are buying.
Insider purchases
The transactions highlighted in green and with the [TREND] have already appeared in previous editions.
1 - Aquaculture, fish farming and related services.
BioFish Holding AS (BFISH) (Market Cap: NOK 84M) - Insiders buy 2M shares at a price of NOK 1 each, part of the employee share purchase program. The company is dedicated to the sale of salmon for fish farms.
Ice Fish Farm AS (IFISH) (Market Cap: NOK 2400M) - CEO buys 12K shares at NOK 27 per share, increases his stake up to 85K shares. The company is dedicated to the production and sale of salmon.
Norcod AS (NCOD) (Market Cap: NOK 940M) -CEO buys 1K shares at NOK 50, thereby increasing his stake to 66K shares. The company is dedicated to the production and sale of farmed cod.
Måsøval AS (MAS) (Market Cap: 3800M NOK) - CEO buys 20K shares at a price of 31 NOK, thereby increasing his stake to 132K shares. The company is dedicated to the production and sale of farmed salmon.
Benchmark Holdings plc (BMK) (Market Cap: £273.53M) - Director buys 200K shares at £0.38, increasing his stake to 1.3M shares. The UK company provides services and products for the sustainable fish farming industry.
Statt Torsk ASA (STATT) (Market Cap: 288M NOK) - Insider buys 20K shares at 1.5 NOK, increasing his share to 16M shares. Company produces and sells farmed cod.
2 - O&G and offshore wind power
TECO 2030 ASA (TECO) (Market Cap: NOK 1300M) - Board member obtains shares from convertible bond, 58K shares at NOK 5.08 (down from current price of NOK 8.88). The company is dedicated to the development of hydrogen-based propulsion solutions for the shipbuilding industry.
Deep Value Driller AS (DVD) (Market Cap: 1800M NOK) - Insider buys 1.5M shares at 20 NOK. With this he already has 7M shares. The company operates drillships for offshore O&G.
Seaway 7 ASA (SEAW7) (Market Cap: NOK 5500M) - Chairman of the shareholders' meeting buys 188M shares at NOK 6.15. The company is dedicated to the transportation and installation of offshore platforms, both O&G and wind.
[TREND] - Cool Company Ltd (COOL) ( Market Cap: 7500M NOK) - The Chairman buys another 4.5M in shares at 130 NOK, after also buying last week. The company, separate from Golar LNG, owns and operates 8 LNG tankers.
3 - Others
Aurora Eiendom AS (AURA) (Market Cap: 2500M NOK) - Chairman of the board signs options to buy 288K shares of the company at 108 NOK, the share is trading at 82. The company operates shopping malls in Norway and is trading at 0.6x Value in books.
Quantafuel ASA (QFUEL) (Market Cap: 1008M NOK) - CEO buys 10K shares at 6.01 NOK. The company is dedicated to transforming waste into biofuels and has received a purchase offer from the company Viridor for NOK 6.38 per share, 5% higher than the current price.
Zwipe AS (ZWIPE) (Market Cap: NOK 155M) - Company insiders buy shares in a new capital increase. In total they buy 1.4M shares at 4.8 NOK. Zwipe AS develops technology to make payments biometrically, using for example fingerprints as authentication.
Share buybacks
CSAM Health Group AS (CSAM) (Market Cap: NOK 750M) - Repurchased 15K shares at NOK 37, program approved for up to 20M shares. the company provides digital solutions for data management in the health sector.
[TREND] - HAV Group ASA (HAV) (Market Cap: 300M NOK) - Repurchased 149K shares at 10.5 NOK. They have already bought back 10% of the company in LTM and have approved another 10%. The company designs environmentally friendly boats and propulsion systems.
[TREND] - Inin Group AS (ININ) (Market Cap: 310M NOK) - Repurchased 192K shares at 2.38 NOK. They continue with the same level of repurchases as the previous week, after announcing the sale of one of its subsidiaries for a value close to its capitalization. The company develops solutions for structural inspection and provides services for rail and infrastructure.
Mergers and Acquisitions
EdiliziAcrobatica S.p.A. (EDAC) (Market Cap: €138M) - Acquires a construction services company (scaffolding and access ropes) in the United Arab Emirates. The purchase price is €7.2M and the acquired company has net profits of €0.8M, assets of €2.7M and a net financial position of €1.9M.
Huddlestock Fintech AS (HUDL) (Market Cap: NOK 320m) - Buys Tracs Services for NOK 32m, they expect the company to provide an extra NOK 14m ARR. Both companies are dedicated to providing digital platforms for the asset management industry.
And that’s a wrap for today! Hope you enjoyed.
See you on the next edition of Weekly Insiders.
Dani