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Insider Purchases Shares of Dakota Resources

- By Kyle Ferguson

Dakota Territory Resource (DTRC) CEO, Secretary & Director and President Richard Lynn Bachman purchased a total of 151,899 shares on two separate dates in six transactions.

On Oct. 12, Bachman purchased 24,800 shares for 3.74 cents per share, according to a Form 4 filing with the Securities and Exchange Commission. Bachman then purchased an additional 127,000 shares on Oct. 17 in five transactions, according to a Form 4 filing with the SEC.

On Oct. 17, Bachman made his first 10,000-share purchase for 3.25 cents per share. He added another 17,000 shares for 3.43 cents per share, then he purchased 10,000 shares for 3.49 cents per share, then another 13,000 shares for 3.9 cents per share and finally added 77,000 shares for 4.2 cents per share.

Dakota Territory Resource is involved in the acquisition, exploration and development of mineral properties. It was incorporated in Nevada on Feb. 6, 2002. In July 2006, the company changed its name from Lakefield Ventures Inc. to Urex Energy Corp. On July 22, 2010 the company changed its name again from Urex Energy Corp to Mustang Geothermal Corp. because it was changing its business and expanding into geothermal energy.

In September 2012, the company changed its name from Mustang Geothermal to Dakota Territory Resource Cor., because it changed its business focus on the acquisition, exploration and development of gold properties and effected a 10:1 reverse common stock split.

Dakota Territory Resource has a market cap of $2.8 million, an enterprise value of $3.93 million, a current ratio of 0.01 and a quick ratio of 0.01.

According to GuruFocus, Dakota Territory Resource has a 2 of 10 financial strength rating and an Altman Z-Score of -37.05 indicating that the company is in the distress zone and is in danger of filing for bankruptcy within the next two years. Dakota Territory Resources also has a 4 of 10 profitability and growth rating with an ROA of -180.05%, an ROC (Joel Greenblatt (Trades, Portfolio)) of -162.50% and EBITDA growth (3y) of -16.40%.

Dakota Territory Resource has two severe warning signs, according to GuruFocus, to which investors should pay attention.

  • The company has a Piotroski F-Score of 3 which is low. This usually implies poor business operations.
  • The company's Sloan Ratio suggests that it has poor quality of earnings. When the Sloan Ratio (-171.97%) is higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

It is also noteworthy for investors that Dakota Territory Resource faces a lot of highly competitive competition according to its most recent 10-K filing.

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.