Hi Sirrobbo,
Just out of interest, have you read Warwick Grigor's Far East Capital weekly commentary on directors buying?
If you haven't read his commentary, you should search for the articles on buying, the pros and the cons (for the director).
His commentary on buying options is also worthwhile reading, It put a new perspective on why comapnies offer options and since reading his thoughts I no longer buy options.
Anyway, Check out the companies where he has held a directorship, Once you have done your research, come back and tell me if investors were wise to follow his buying.
MNS is another example of directors buying, did this work out well for investors?
I can provide numerous examples of directors buying where it hasn't gone well for investors.
You can also do this with the companies you hold. look back at the change of director notices and work out their averages, then compare this to the current SP. Has this been a good investment?
When they bought on market, was there a CR in the near future,
If they were underwriting a SPP, ask yourself, was this to encourage other shareholders to take part and did they really want to underwrite the offer.
Also compare the SP from the underwriting and SPP's to the current SP.
Once you have done all of this, I am sure you understand what I am talking about.
To the simple person a director buying is always fantastic to see, but there can be hidden agenda and it doesn't always end well for investors.
Expand
(20min delay)