On February 2nd we closed our negative view on 3i (III, 206p) with a 67% return relative to the market, or a 76% absolute return (post here).

We were a little wary of recent directors purchases, suggesting that they were in support of the incoming CEO Michael Queen.

The market appluaded McQueens appointment and rewarded the shares with a 23% run in the following two weeks. Since then however concerns have arisen over 3i’s credit rating, and the shares have given up all those gains.

On February 4th Richard Meddings, non exec, added a further 5,000 shares at 225p, and on 24th February Willem Mesdag, another non exec, doubled his position by buying 25,000 shares at 198.5p.

Over the last month therefore we have five of the seven non execs buying shares, althouh admittedly in limited volumes. Total purchases by non execs add up to only 70,000 shares.

However due to the number of non execs buying shares, we are moving 3i from a MEDIUM strength signal to a STRONG signal.

View on 3i: Positive

Strength of Signal: STRONG

For all posts on 3i click here.