Chime Communications (CHW, 129p) have seen three directors buying shares this week.

Satterthwaite (CEO), Bell (Executive Chairman) and Smith (CFO) between them bought 91,000 shares at between 120 and 122.5p.

Despite the positive comments from Questor in March (see below), I consider these purchases as a MEDIUM signal as they average an increase in existing shareholdings of the three directors of only about 22%, yet three directors bought shares.

Questor March 16th 2008:

Having delivered on its previous targets, Chime has set another seven, including boosting average fees per client, margins, and the proportion of revenues it derives from emerging markets. It is doing so, founder Lord (Tim) Bell said in a climate where it has seen “no sign of any slowdown”. Indeed, he set out 10 reasons to be cheerful, although investors failed to look on the bright side and marked the shares down heavily on the day the results were released.

Questor thinks that was harsh. The company has a strong balance sheet, an excellent outlook and the shares trade on a significant, but unwarranted discount to the rest of the battered media sector.’