director buying, page-9

VAMMAN,
Have I missed something?

You qoute: "Director buying is always a sign to purchase a stock. Thats a known fact...."

ASX trading rules clearly states that any price sensitive information (ASX Listing Rule 3.19B)must be released to the public as soon as it becomes available. Therefore, the "Director buying" notification CAN NOT be interpretated as a sign to purchase, its a investment decision, noting else.

Here is an extract you may be interested in: http://www.facilitatedigital.com/images/pdfs/FACILITATE_DIGITAL_Share_Trading_Policy.pdf

When can you deal in the Companys shares?

Public companies are required to continuously disclose price sensitive information, so there is no particular period of time in which it can be automatically assumed that it is safe to trade in the Companys shares.

The only permissible time for a director, senior manager or employee to buy or sell the Companys shares is when he or she is not in possession of price sensitive information.
Without limiting this principle, the following rules have been established to assist directors, senior managers and employees in fulfilling their obligations:

a) Directors, senior managers and employees must not engage in short term trading i e. the buying and selling of the same parcel of shares (or part thereof) within a twelve month period.

b) There is an absolute prohibition on any trading of shares in the period from the close of books until the date of announcement of the full year and half year results respectively, and in the two week period prior to the Annual General Meeting.

c) Directors, senior managers and employees may trade in the Companys shares in the period commencing one day after the announcement of the full year results, half year results and the Annual General Meeting, provided always that the director, senior manager or employee is not in possession of price sensitive information at the time of trading.