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Ashtead non-exec buys on weakness

The shares have been on a downward trajectory since early October
November 8, 2018

Historically, Ashtead (AHT) has benefited from its exposure to the US construction sector, boosted by the construction credentials of President Trump and reconstruction efforts in the wake of hurricanes Harvey, Irma and Maria. As such, pre-tax profits were up by close to a quarter in the three months to July.

IC TIP: Buy at 1,882p

But the share price has started to fall steadily since the start of October, and is now trading close to the 12-month low. It seems non-executive director Ian Sutcliffe has taken advantage of this, buying roughly £250,000-worth of shares.

Equipment rental companies are highly cyclical, making them vulnerable to large share price shocks when the cycle changes. Business cycles are difficult to predict, too, which makes these companies particularly vulnerable to 'herding' – when investors react to the behaviour of other investors, rather than market fundamentals.

Buys       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
AshteadIan Sutcliffe26 Oct 1813,9331794249,95813,9330.003
CareTechKarl Monaghan29 Oct 186,70036924,72341,4840.038
Domino's PizzaDavid Bauernfeind31 Oct 188,000279.09922,3288,0000.002
ElementisNicholas Salmon25 Oct 185,000203.448510,17217,5000.003
ElementisPaul Waterman (ceo)26 Oct 1810,0001.9619,600379,8300.065
EnQuestLaurie Fitch29 Oct 1870,00026.118,27070,0000.004
EPE Special OpportunitiesHeather Bestwick31 Oct 1812,50018022,50012,5000.044
EPE Special OpportunitiesGeoffrey Vero (ch)31 Oct 1812,50018022,500136,2140.481
EPE Special OpportunitiesClive Spears31 Oct 1812,50018022,500125,1050.442
EPE Special OpportunitiesNicholas Wilson31 Oct 188,33318014,999120,8940.427
EssentraPaul Forman (ceo)29 Oct 1820,000370.574,100240,0000.091
Everyman MediaAdam Kaye30 Oct 1827,500199.4454,8465,162,1827.272
GateleyNigel Payne (ch)29 Oct 1816,819147.924,87555,9260.052
GlaxoSmithKlinePhilip Hampton (ch)31 Oct 182,8671,52643,75051,1570.001
GraftonSusan Murray30 Oct 181,500706.6610,6001,5000.001
GVCJane Anscombe30 Oct 183,763929.52234,9785,1690.001
Hargreaves ServicesGordon Banham (ceo)29 Oct 1873,000340248,2002,632,5758.200
Hargreaves ServicesRoger McDowell29 Oct 18300,0003401,020,000300,0000.934
IGJune Felix30 Oct 1817,000608.41103,43017,0000.005
IGAndrew Green (ch)30 Oct 188,174608.5949,74615,0550.004
International Public PartnershipsJohn Le Poidevin29 Oct 1832,550152.549,63997,8830.007
International Public PartnershipsMichael Gerrard29 Oct 1855,739152.585,00255,7390.004
ITEAndrew Beach (cfo)25 Oct 1833,50059.720,00074,7500.010
JPMorgan Multi-Asset TrustSian Hansen26 Oct 1811,89893.066711,07329,8220.034
Lloyds BankingJames Lupton26 Oct 18250,00057.17142,925800,0000.001
LoopUpBarbara Judge (ch)25 Oct 189,000330.529,74542,7540.078
Metro BankCraig Donaldson (ceo)30 Oct 1810,0002,176.25217,625170,3420.175
MX OilNicholas Lee29 Oct 1849,000,0000.149,00049,000,0001.768
MX OilNigel McKim29 Oct 1839,000,0000.139,00039,000,0001.407
MX OilRichard Carter29 Oct 1812,000,0000.112,00012,000,0000.433
MX OilStefan Olivier (ceo)29 Oct 1853,000,0000.153,00063,000,0002.273
RotalaGraham Peacock26 Oct 18125,00051.564,3752,916,6666.073
RPSKenneth Lever (ch)25 Oct 1830,000148.6444,59270,0000.031
RPSGary Young (fd)25 Oct 1861,800157.197,088171,7190.076
RPSJohn Douglas (ceo)25 Oct 18207,348157.9669327,541207,9020.092
RPSAllison Bainbridge30 Oct 1816,400160.73326,36016,4000.007
Safestyle UKMichael Gallacher29 Oct 1850,00079.539,75050,0000.060
Spirax-Sarco EngineeringGeertrui Schoolenberg29 Oct 189006,503.3358,5302,7540.004
St Modwen PropertiesDanuta Gray30 Oct 1810,500370.45538,89810,5000.005
Standard Life AberdeenKeith Skeoch31 Oct 18150,000269.12403,6802,335,8970.091
Standard Life AberdeenMartin Gilbert31 Oct 18150,000271.66407,490381,1620.015
Royal Bank of ScotlandRoss McEwan (ceo)30 Oct 1899,458230.1228,8532,221,9650.018
Royal Bank of ScotlandHoward Davies (ch)30 Oct 1839,000231.190,12980,0000.001
Time OutPeter Dubens (ch)25 Oct 18300,00070210,0002,050,3021.535
Time OutPeter Dubens (ch)26 Oct 18300,00070210,0002,350,3021.760
U and IRichard Upton25 Oct 1810,08320820,9733,161,3162.520
U and IRichard Upton26 Oct 1860,000215129,0003,221,3162.568
WandiscoYeturu Aahlad30 Oct 1810,000392.5839,2582,443,1485.844
WandiscoDavid Richards30 Oct 1810,000392.5839,2582,119,2335.070
Warpaint LondonEoin Macleod30 Oct 18150,000120180,00019,445,20825.336
Warpaint LondonSamuel Bazini30 Oct 18150,000120180,00019,445,20825.336
YouGovRoger Parry (ch)29 Oct 187,50038428,800102,4610.097
Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Produce InvestmentsRobert Johnston25 Oct 181,7481903,32138,2520.140
Produce InvestmentsRobert Johnston26 Oct 1810,00019019,00028,2520.103
Produce InvestmentsRobert Johnston30 Oct 188,25219015,67920,0000.073

*Placing/tender/open offer ♥Spouse/connected party