Rats come to mind whenever Rentokil is mentioned. And now sinking ships lurch in from stage left.

Rentokil (RTO, 44p)  announced yesterday that on November 13th David Liu, the Divisional Managing Director of Asia Pacific, had bought 130,000 shares at 45.5p (possibly to crystallise a loss), and sold 210,000 shares at 45.5p, leaving him with no position in the ‘Royal Rat Catcher’. Liu joined Rentokil from Aegis in 2005.

Directors sales at Rentokil have been few and far between. In fact the only independent sale (not connected to an options exercise) was by non exec Peter Bamford in October 2007, when he sold 10,000 shares at 168p. Though he still holds 38,000 shares.

Executive directors purchases over the last three years carry very little weight.

Rentokil recently announced third quarter results with an update on cost cutting/restructuring progress (Telegraph comment here).

I suspect trading conditions for a service company like Rentokil can only deteriorate in this environment.

View on Rentokil- Negative- PDMR selling

Strength of Signal- Weak

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