The Globe and Mail reports in its Wednesday, April 15, edition that oil patch executives are stepping up purchases of their own companies' shares in the wake of a steep decline in the price of energy stocks. The Globe's Andrew Willis writes that in many cases, insiders who sat on their hands earlier this year are now dipping into their own savings -- or borrowing money -- to buy stocks that declined by 60 per cent or more over the past month. Insiders were particularly busy at four companies: Kelt Exploration ($1.14), Ovintiv ($6.09), Cenovus Energy ($2.62) and Enerplus ($2.89). This group accounted for the majority of all insider buying at the 29 oil and gas stocks followed by RBC Dominion's analysts. Kelt chief executive officer David Wilson made the biggest splash, investing $3.6-million, while Ovintiv director Thomas Ricks ponied up $1.2-million and Cenovus CEO Alex Pourbaix put $502,000 into his company's shares. RBC analysts say, "While it is difficult to 'call the bottom,' this suggests a consistent internal corporate view that these stocks are undervalued and current market dynamics will normalize over time." The analysts warn that insider buying alone is not a sign of health at an energy company.
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