Shares in Vocus Communications Limited (ASX: VOC) and TPG Telecom Ltd (ASX: TPM) have been smashed over the past month as investors reacted to news of slower growth in the future. Rising competition is also a concern, with the telecom sector now consolidated among four major players – Optus, Vocus, TPG Telecom, and Telstra Corporation Ltd (ASX: TLS). TPG is down a sharp 30% in the past month, with Vocus also losing 22% of its value during that time.

Yet both companies continue to stride forwards, with Vocus most recently announcing that the Australian Competition and Consumer Commission (ACCC) would not oppose its acquisition of Nextgen Group. Vocus also reported that its National Broadband Network (NBN) customer numbers have grown 22% since June, with margins remaining constant.

Insiders buying heavily

Investors can expect a full update from Vocus at its Annual General Meeting (AGM) on or before 29 November. Company insiders haven’t been sitting on their hands while the price falls though, with Director Anthony Grist taking advantage of the price falls to buy 250,000 shares on the market last week – for a cool $1.57 million.

With Vocus expected to receive significant benefit from its Nextgen acquisition, customer numbers growing rapidly, and a company update coming in November, should investors think about following Mr Grist and doubling down on the company?

After all, as the saying goes, ‘directors sell shares for many reasons, but they buy for just one – they think the price will rise‘.

Vocus directors aren’t the only ones buying the company, with fundie Greencape Capital and Challenger Ltd (ASX: CGF) reporting a significant stake in the business in recent days.

At least one TPG director also sees value in his own business, with Mr Robert Millner buying $862,000 worth of TPG Telecom shares just three days ago.

That should give investors some confidence that Vocus or TPG are seen as good value by the companies own insiders.

Although growth was not up to expectations, it’s not as though the fundamentals behind either company have deteriorated in the last month. Vocus and TPG shares haven’t traded at these levels in over a year, and should they fall further they could become a clear example of standout value in my opinion.

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Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.