Shares digital

Several directors of regional newspaper group Johnston Press (JPR) have bought shares in the company, yet this should not be interpreted as a buying signal. The purchases, totalling more than £325,000, formed a deferred element of bonuses for 2007.

But the group’s financial position remains a concern thanks to hefty borrowings. Net debt totals £692 million, dwarfing the company’s £375 million market valuation, while recently the company admitted that advertising revenue was on the slide, down 4.2% in the early weeks of this year. In addition the market is likely to remain ‘challenging’ especially as the problems of the housing market will affect the volume of advertising.

Shares says: Analysts remain lukewarm and so should investors. AVOID