It's usually worth paying attention to director dealings, as share purchases can often be a signal that the trading performance of a company is better than the market is giving it credit for. And when more than one director gets in on the act, as is happening now at pallet manufacturer RM2 International (RM2), it can be a very strong signal indeed. Add in last month's 24m share, or 7.5 per cent, purchase by star fund manager Neil Woodford, who has made RM2 the largest Aim-listed holding in his new Woodford Equity Income Fund, and this blue-sky growth stock is definitely worth a closer look.
- Director dealings
- Neil Woodford’s fund buying shares
- Well-connected board of directors
- Innovative product with huge market
- Manufacturing problems
- Uncertain order timeline
RM2's chief executive John Walsh is the most recent executive to give the shares a vote of confidence with a 1m share purchase last week at 62p (see table). He's part of a star-studded board, including chairman Ian Molson, a scion of Canada's Molson family - part-owners of brewer Molson Coors (NYSE: TAP), former Marks and Spencer (MKS) boss Stuart Rose and former Diageo (DGE) boss Paul Walsh.