Capital and Regional (CAL, 199p) get a great rap for their news of an ‘overhaul of its banking covenants and significantly reduced overall debt levels’ , see Telegraph article here.

It should come as no surprise then to find management confident and buying shares, having been extensive sellers in 2006 and 2007.

From October 2006 to May 2008, Kenneth Ford, Head of the shopping centre portfolio, sold 210,000 shares, realising about £1.2 million. That’s an average price of around £6 per share. He actually sold as high as £15.30p in April last year, not far off the stocks high of £16.95p in February 2007.

This week Ford bought 50,000 shares at 184.9p, taking his position to 606,000 shares.

Tom Chandos, Non exec Chairman bought 40,000 at the same price, doubling his holding to 80,000 shares, and Hugh Scott-Barratt, the CEO, bought 50,000 shares at 183.5p, a 1/3rd increase in his position to 200,000 shares.

So decent size purchases in £ terms, an average increase in holdings of more than 40%, and three directors buying. Yes I agree that Ford especially has a lot of earlier sales proceeds to commit, but I think these purchases herald the beginning of the end of the ‘fear’ period for Capital and Regional.

Signal strength: MEDIUM, with potential to upgrade pending further ££ purchases by directors.