New World Resources (NWR, 900p) is a Czech and Central European coal miner, producing coking coal and thermal coal.

NWR has a secondary listing in London, and caught my attention last week when two directors bought GBP 30k-40k each at above 1050p. They were followed this week by three more, investing GBP 35k to GBP 250k each, a not inconsiderable sum, at prices between 718p and 940p.

The stock has halved since they produced interim results at the end of August (link to company website). I shalln’t [how do you spell this word] attempt to analyse the results, but the main two points were a huge jump in operating cash flow (172%) due to prices, and a big jump in costs (15% underlying).

Conclusion: Five directors buying (2 execs, three non execs), good size (GBP 35k to 250k), and a significant increase in shareholding (25% to 100% of existing holding) warrant a STRONG signal.

Risk factors include: secondary listing in London, relatively recent IPO (May).

For the official announcements of directors dealings in NWR go to the London Stock Exchange ‘Market News’ website, and type ‘NWR’ in the ‘name/code’ box.