Good morning!

Due to computer problems, yesterday's report ended up taking me most of the day (I lost a large section and had to re-do it). So in case you missed it, here is the link, to where I looked at Regenersis (LON:RGS) and Pittards (LON:PTD), in addition to earlier comments about Boohoo.Com (LON:BOO)

The market so far today has that feeling of a crisp autumn morning, immediately after a big storm - a few bargain hunters are emerging from their battened down hatches, to be the first to collect up some of the debris from the storm!


Regenersis (LON:RGS)

Director buying - a couple of readers thought my comments on the Directors of Regenersis yesterday were a bit harsh, which on reflection they probably were. My main point is that they've been extremely shrewd in loading up with cheap shares at the right time, and dumping a large chunk of them a few months before things started to go wrong.

So, when you see Directors with a track record of timing entry/exits uncannily well, then it pays to take notice of what they are doing with their own money. Sure enough, and on cue, a decent-sized Director buy has been announced today.

Hanover Investors (the key shareholder in Regenersis, connected to  Chairman, Matthew Peacock, and one of the NEDs) has increased its stake by 200k shares, to just over 5.4m shares (6.9% of the total).

As a general point, the only exception to when to follow Director trades (in my opinion), is immediately after bad news. Since, with many companies, such purchases are nearly always just done for PR reasons, to reassure shareholders. Often such purchases only stabilise the price for a day or two, before continued falls.

That's not the case here. As I explained in yesterday's report, Regenersis is starting to look interesting again, as the rather unimpressive, low margin electronics repair division looks set to be disposed of. That would then leave a higher margin, smaller business focussed on data erasure software, which Regenersis reckons is a good growth area.

I really hope management twig that "less is more" with the future accounts. The ridiculously over-complicated reporting, and incredible adjustments to the accounts, should be ditched. Instead I think investors would…

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