On November 19th Melrose plc (MRO, 78p) reassured investors with an Interim Trading Statement saying that ‘trading is in line with expectations’ and ‘the integration of FKI is ahead of plan’.

So good news. This was supported by director buying on the 19th and 25th of November by four directors who between them bought over 1.3m shares at between 63p and 64.9p.

The three executive directors (Miller Exec Chairman, Roper CEO and peckham COO) increased their positions by an average of 11%.

Non exec John Grant effectively initiated a position by buying 153,000 shares, taking his holding to 164,000 shares.

My thoughts?

Definitely one for the watch list. Positive due to four directors buying, decent $$ amount, but not a STRONG signal due to limited % increase in holdings. Next news is unlikely to be until early March, when full year results to end December will be announced.

Look for further director share buying this month, before the ‘window’ for directors dealing activity closes. This could cause us to reinforce our positive view on Melrose.

Another engineer with directors buying shares. See here for all comments on the UK Engineering sector.

View on Melrose plc: Positive- Four Directors buying.

Strength of Signal: MEDIUM- Insufficient % increase in holdings to warrant a Strong view, Four directors buying, Good $$ committed.

Sources: London Stock Exchange, Digitallook