Ann: Change of Director's Interest Notice, page-92

In my opinion, management buying and selling should not form the sole basis of your investment decisions as there have been many cases where management have not sold (or bought) at the most opportune time (as Travold identified one case above). It should only be 1 piece of the puzzle. In this case the company is still in a great position, they are expanding production and Paul still owns 40% of the company. Him selling alone isn't a cause for concern in my opinion. You only have to do a bit of back-testing yourself on insider buying and selling to find out that there is little to no investment edge there. If there was you would see many many funds set up strategies solely based on that strategy (i.e buy when directors do and sell when directors do) and investing would be easy. In realty its never that easy.