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‘EasyJet slides as planes fly with empty seats’

Easyjet shares have recently taken a nosedive, prompting four directors to increase their holdings by a significant amount (Michels- Non exec, Browett- Non exec, Chandler- Chairman, and Harrison- CEO).

It is the Chairman, Sir Colin Chandler, who has the best track record. He has bought stock three times in the last five years. Within 10-12 months of his purchase, on each occasion, the share price has appreciated by between 70% to 110%.

Sir Colin Chandler

February 2003- paid 205p. easyjet shares traded at 370p 10 months later.

August 2004- paid 140p. easyjet shares traded at 300p 12 months later.

February 2006- paid 378p. easyjet shares traded at 650p 10 months later.

January 2008- paid 424p.

OK, so Chandler never banked his profits. But from the evidence above he clearly recognises a buying opportunity. An example I’m happy to follow.

Terry Burman, CEO, has started to buy back some of his Signet (SIG) shares. on Jan 16th he invested £60k at 61p per share to buy 98,000 shares. This is a mere drop in the ocean, and needs to be substantially reinforced through further investing before it becomes a buy signal.

Terry Burman- Signet (smile terry!!)

Why? Well, Tel boy between April 06 and April 07 sold about 3.2m shares between 95p and 124p (note the all time high was 127p in april 07).

A better indicator might be Chairman Malcolm Williamsons purchase on January 17th of 100k shares at 63p. This more than doubles his shareholding to 173,000 shares. Williamson was appointed to the board in 2005, and became chairman the following year. I’m afraid though that Williamsons expertise lies in the financial arena, with present and previous roles at Visa, Standard Chartered, National Australia Bank, and JP Morgan Cazenove. And I’m not sure I’d listen to him with regards to likely future activity of the common or garden consumer. So look for Burman to spend some more $$ before you buy Signet.

Malcolm Williamson- Signet

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January 2008