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Enodis (ENO, 172.5p) is a nice little mover, and not new to bid rumours. Its directors seem to consistently take advantage of any setbacks in the share price.
To see if a pattern has been established, let’s go back a couple of years, to January 2006:
Jan ’06- Mike Cronk (non exec) and David McCulloch (ceo) both buy 50k shares each, at prices between 133p and 136p.
June ’06- Enodis reaches 215p (on news of discussions with Manitowic ticker: MTW)
August ’06- Peter Brooks(non exec and chairman) and Mike Cronk buy 38k shares between them at 171-172p
Jan ’07- Mike Cronk buys another 50k at 208p
Feb ’07- Enodis trades up to high of 223p (despite co rejecting AGA bid approach in Nov 06)
Sept ’07- Peter Brook buys 30k shares at 175p
Oct ’07- Enodis trades up to 215p on more bid rumours (supposedly Manitowoc again)
Nov ’07- Joseph Ross (non exec), David McCulloch (ceo), Mike Cronk (non exec) all buy shares between 166p and 186p.
In my opinion these recent purchases are not significant in terms of the number of existing shares held, but they do show a continuation of a significant behavioural pattern, from which you and I should be able to benefit.
Maybe sufficiently to be able to buy a new kitchen!
Over the last two weeks two non exec directors at Experian have been buying up shares, at between 410p and 427p (close last night 427.75p). They are Fabiola Arredondo, who was MD of Yahoo Europe between 1997 and 2001, and Sean Fitzpatrick, previously CEO of Anglo Irish Bank.
Fitzpatrick committed a miserly £70k to Experian shares this week. I say miserly because last week he spent Euro 500k buying Anglo Irish shares, in which he now has a Eu 50m position. I’d like to see a bit more commitment to Experian from Fitzpatrick.
Arredondo meanwhile committed £176k to Experian. This is her first real purchase since the company was demerged from GUS in October 2006
Another Non Exec, who has been quietly buying shares, is Roger Davis, ex CEO of Barclays UK. He has invested between £600-650k at prices between 410p and 430p, over the last two months.
Also to note: Competitor Equifax in the US (EFX) is 20% off its highs this year, Experian (EXPN) around 35% down.
This is definitely a space to watch.
Last Thursday, November 21st, the three amigos at Michael Page International (MPI), CEO Ingham, CFO Puckett and MD Dumon, stepped in to buy back shares they had sold only 7 1/2 months earlier at twice the price.
They each bought 170,000 shares at 280p. Puckett and Ingham sold on April 10th around 147,000 shares at 560p each. Dumon sold 428,000 shares on April 10th and May 4th at between 560p and 580p.
I suggested in my post on November 14th that, following the move by Nelson, CFO of SThree (STHR), who bought £100k worth of shares at 211p having sold in November 2006 at 372p, we were likely to see a positive share price move in the sector.
Look for more news from SThree next Thursday, when they give us a ‘pre close trading update’. This is likely to be positive for the Recruitment Sector overall.
What credibility do you give to this share purchase:
1. 40+ years exerience in the sector
2. Non exec Chairman
3. Sold around £750k of stock in May this year (great timing)
4. First purchase in 5 years (I don’t have the data before then)
5. Increased position in company by 300%
6. Bought £1.6m of stock at prices between 496p and 515p, having sold £744k’s worth in May this year at 708p.
Take a look at Richard Peskin of Great Portland Estates. He looks like a happy guy doesn’t he?
Gt Portland Estates Development Director Noel also put money to work, but only a measly £50k. This is the second purchase in the sector since Hammerson last week (Non exec Clare, who also bought back stock he had sold earlier in the year at prices 50% higher than today).
When we see the third director purchase in this sector then it is time for me to buy too.
Addendum: see FT Alphaville article on sector: http://ftalphaville.ft.com/blog/2007/11/19/8998/mid-season-stock-clearance-in-the-property-sector/
Addendum: 20 November- Peskin bought another 150,000 shares, taking his holding to 583,000, having spent £716,000.
CEO and CFO of Yell (YELL) yesterday bought over £1m of shares between them. Non exec Bunting also picked up about £620k’s worth at the same level (415-416p).
Apart from the fact that this is serious $$ to invest, another reason for picking up on this signal is the fact that Condron and Davis sold stock (around £7m between them) back in December 2006 at around 570p. This was followed by a profit warning in April which precipitated a 17% fall in the share price as a result of analysts downgrading US growth forecasts.
Maybe there is now good news in the pipeline. Look for positive comments on Yell.com over the next three months.
followthedirectors... a study of directors share dealings 
