Serious Director Buying

WJCC.

One of the points in the Peel Hunt note is debt reduction. They quote it as being £9.1m in H1 and they expect it to be around £5m by the year end compared with £13m at the year end 2004 - they must be saving aroud £750K interest this year over last year which must help boulster the result. Debt was £18m in H1 last year so they are killing debt off at a pace.

Pre-tax has gone (£9.5m) 03, (£2.7m) 04, £2.8m 05(e,) £5.8m 06(e),

I reckon they have every chance of achieving that myself.

The US is perfoming well, change of management and probably benefitting from a stronger dollar that will offset higher energy costs.

Turnover should be £140m in 06 - 3.5% margins will have them meeting expectations of 5.8p eps as the tax rate will be 6.5% in 06 according to Peel Hunt.

I also think sometimes in this game you need a 'nose' for a overlooked undervalued stock imo. What got my nose twitching was a change in management that got praise from the Chairman in the last results and directors buying shares nearly half way into their final quarter and key trading period - you must know how your last Q is going when one month in imo. Four directors buying decent stakes - why? You get the odd nutter on a board of directors but I can't imagine all four are reading it so wrong.

CR