ITS TIME FOR THE DIRECTORS TO BUY SHARES IN TFC

1249 GMT [Dow Jones] Trafficmaster (TFC.LN) non-executive chairman Colin Walsh purchased 100,000 shares at 26p just before Christmas. This doubles his stake and signals his confidence in the company's long-term prospects, notes Bridgewell. Estimates Smartnav will account for around 28% of the GBP44.4M group revenue it forecasts for '05, rising to 31% of the GBP56.4M forecast in '06. Although Smartnav is "clearly having a tough time" against TomTom and other portables, in Pay-As-You-Drive (PAYD) applications "it has a clear competitive advantage over portable units" which cannot be used for this. With the shares on a P/E of 6.2x '06, it "looks undervalued given the strength of the Teletrac fleet management arm in the US." An update on '05 trading and any clarification on PAYD from its largest customer, Norwich Union, "will lead us to review our neutral recommendation." Shares -0.9% at 28.25p. (PBA)