Q: A company that was showing good potential a few years ago but then flamed out. Near death, but seems to be on back on track. Could you confirm the insider buying also any positives or negatives... would you endorse buying ANRG.TO
5i Research Answer:
With new management and some positive announcements the stock is up 141% this year. Insiders own 24% and have been net buyers in the past six months. More recently, just minor transactions involving options/selling. Marny Investments owns 54% and the former CEO owns 19%. It has potential, but we note it is still losing lots of money and cash flow is negative. The balance sheet is not great, either. We think it is worth watching for new deals and revenue growth but too risky for a general endorsement.