This stock really has plummeted. I suppose welding and air and gas handling are hugely sensitive to the economic cycle (Charter website). But is the 67% fall in share price since October 1st more than discounting the potential impact of a recession?
A look at the numbers for Charter plc (CHTR, 326p) shows great cashflow generation and decent asset backing, but little dividend payout. But as in anything only time will tell if the two directors who bought shares on Friday are right.
Non exec John Neill bought 20,000 shares at 345p taking his position to 87,000 shares, and
CEO Michael Foster, through his Mrs Mariam Foster, bought 10,000 shares at 314.25p, taking his/their holding to 33,000 shares.
Only five weeks earlier Neill had paid more than double the price. And Foster paid above GBP 10 in November last year. So I’d like to see support from other directors thereby building a consensus with which I’d be happier to buy shares myself.
In the meantime, one to watch.
View on Charter plc: Positive- directors buying shares.
Strength of Signal: Medium. Need to see more directors buying to merit a STRONG signal.
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October 22, 2008 at 3:20 pm
Charter plc - more directors buying = Strong signal « followthedirectors… a study of directors share dealings
[…] October 22, 2008 in Directors buying, FTSE 250 company, STRONG signal | Tags: Charter plc, directors dealings Only three days ago, on Sunday October 19th, I highlighted directors buying at Charter plc (CHTR, 390p) at between 314p and 345p: Charter plc – directors buy after shares fall by 2/3rds this month. […]