Following first half results which were better than expected ( see Questor article of 31/7 here), Rexam (REX 376p) directors have started to buy again.

Chairman Peter Ellwood has doubled his position to 20,000 shares, investing £38k at 380p. His colleague Bill Baker, and Executive Director of Rexam, has increased his holding by 20,000 shares to 194,000 shares, by investing £76k.

In mid December 2007 Rexam issued a profit warning which sent the shares down by 20%.

Eight directors of Rexam subsequently bought shares at between 410p and 435p, increasing their holdings by an average of 70% each. The shares rallied to 480p over the next five months, outperforming the FTSE by 20%.

For me to be convinced, I need to see the board of Rexam as committed now as they were back in December. These small purchases by Ellwood and Baker do not make the grade.