Sure, price can do anything in the short term. But it's the long...

Sure, price can do anything in the short term. But it's the long term price that matters most for investors. The long term price will be governed by the fundamentals and financial performance of a business. If these are strong, then the SP will be strong in the long run. To me, Donald's option exercise signals to me that he is of the belief the future fundamentals and financial performance of Codan will be strong. It signals to me that even at $16.34 he is of the belief that the SP is of good value when compared to these fundamentals. And for me, I believe Donald, as CEO, is in the best seat to come to this assessment. For me, that provides me huge confidence.

So as far as the fundamentals and future fundamentals of a business is strong, a short term price downturn could actually be an investor's friend, and an opportunity to increase one's position.

Of course if you are a short term trader/speculator, then the above is not applicable, and in this case I don't have any comments other than to say you probably have a similar chance of profiting at the roulette table in the casino.