I’m not talking about the big cap FTSE 100 stocks here, but smaller FTSE 250 companies that are the global leaders in their field of specialty engineering.
Many of these companies have grown from a UK engineering base to have globally spread customers. They may also be companies with less near term economic exposure, protected by longer lead times, and also big beneficiaries of a weak Sterling.
It is unusual to see so many companies in one sector showing directors purchases, most of which have occurred in the last ten days. The directors clearly think trading conditions are better than those indicated by the share valuations in the stockmarket.
Weir Group (WEIR, 295p) : Three directors have invested GBP 350k in last two months.
Provider of engineering solutions (pumps, valves, pipelines, maintenance etc) to the mining, oil and gas, and power generation markets worldwide.
10x Half year 2008 operating cash flow. GBP 620m mkt cap.
Senior plc (SNR, 42.5p): : Six directors have invested GBP 70k in last two months.
Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide civil aerospace, defence, diesel engine, exhaust system and energy markets.
6.8x Half year 2008 free cash flow. GBP 170m mkt cap.
IMI plc (IMI, 269p) : Three directors have invested around GBP 80k in last two months.
13.8x First half 2008 operating cash flow. GBP 400m mkt cap.
Read ‘Can Sulzer come back and bid for Bodycote? Ask the directors’ published at followthedirectors October 28th 2008.
Laird plc (LRD, 153p): Four directors have invested around GBP 70k in the last week.
Laird plc‘provide technology for an increasingly connected world’ in the form of Electronic Components and Antennae enabling wireless connectivity (see co website for the lowdown).
10x First half 2008 operating cash flow. GBP 280m mkt cap.
Read: ‘Confident Laird directors delve into their pockets’ October 28th 2008 followthedirectors.
Disclosure: I have positions in Bodycote and Laird
Information sources: Company websites and London Stock Exchange.
5 comments
Comments feed for this article
October 28, 2008 at 10:07 pm
Confident Laird directors delve into pockets « followthedirectors… a study of directors share dealings
[…] also ‘25 directors buy shares in UK engineering companies’ (October 28th […]
October 28, 2008 at 10:08 pm
Can Sulzer come back and bid for Bodycote? Ask the directors. « followthedirectors… a study of directors share dealings
[…] also ‘25 directors buy shares in UK engineering companies’ (October 28th followthedirectors.co.uk) Possibly related posts: (automatically generated)Significant […]
October 30, 2008 at 10:30 pm
Head of GKN Automotive doubles shareholding. « followthedirectors… a study of directors share dealings
[…] ‘25 Directors buy shares in UK Engineering Companies’ (October 28th […]
November 13, 2008 at 11:46 am
TT Electronics sees acceleration in director buying activity « followthedirectors… a study of directors share dealings
[…] rings a bell to remind us of the aggressive directors buying in the engineering stocks (see ‘25 directors buy shares in UK engineering companies‘ October 28th followthedirectors.co.uk) […]
December 10, 2008 at 9:56 pm
John Wood CFO buys back shares sold in April « followthedirectors… a study of directors share dealings
[…] last comment on John Wood Group was on October 28th at 179p ‘Four directors have invested over GBP 1m in […]