Nick Salmon- Cookson CEO Mike Butterworth- Cookson CFO

Mike Butterworth, CFO, and Nick Salmon, CEO, of Cookson Group PLC (CKSN, 614p) yet again put their money where their mouth is.

Cookson on Tuesday declared in line results for 2007, with a confident outlook for 2008.

Butterworth and Salmon have been consistent buyers of the stock over the last three years. They last bought in March 2007, which prompted me to pick up some stock too. From March to October Cookson outperformed the FTSE250 by 40%. Since June 2005 Cookson were up 130% vs the FTSE250 up 60%, until October 2007. They’ve given up all this outperformance over the three months to January 2008.

The fact that Butterworth and Salmon have increased their holdings in Cookson by 90% and 45% respectively, gives me the confidence to buy some more for myself.

This is not a short term trade, ahead of news, but a longer term ‘invest alongside the management’ which has worked for me before.

Caveat: I’ve just read the statement from the company, not disclosed in the stock exchange statement, which shows this purchase to be part of the long term incentive plan. Under this plan, Butterworth and Salmon get ‘matching shares’ which means that essentially they’ve bought this stock at under 300p. So substantially lower risk to them than buying them at 590p (like you or I would have to).