director buys 1 million shares, page-7

Irynka

I disagree. I hope you are not intentionally downramping.

Directors buy stock, generally, for one reason and one reason only - because they think the share price will increase. Take out a few exceptions like James Packer with Onetel, and this is almost uniformly true.

Keep in mind that just because you are become a director of a publicly listed company, does not automatically morph you into a gun sharetrader. The director who spent $3 mil buying Nufarm shares thought the value of his holding was going to increase.. that it did not does not mean he was merely trying to prop up the share price. It just means he cannot predict future share prices with 100% accuracy.

Don't tell me every time you have bought shares expecting to make money you have done so. Even full-time professional sharetraders like Aksier, Ipod and Pjsimon buy shares that go down in value, let alone a director that may well know absolutely nothing about technical analysis.

Not that this is particularly relevant but many of the best traders in the world actually expect to make many more losing trades than they do winning trades... they just have a system based on mathematical expectancy rather than a need to be right about a particular trade ( read K Van Tharp's Trade Your Way to Financial Freedom)

I would take the opposite view regarding the purchase of CKK shares - the fact he had the chance to buy shares much cheaper in the past suggests he is now aware of information that will positively affect the companies share price which he did not know or expect when he had the opportunity to participate in the SPP.