Ann: Market Update-SRX.AX, page-56

Be vary wary when a director sells a large portion of shares....

Over the last 12 months share I have been either looking at or invested in companies that had a director selling a large portion of their shares  and negative news followed...

1. Nine Ent  - Director Richard sells ... 6 weeks later trading update share tanks ... $2.20  to $1.40
2. Collection House - Founding Director sells ... 6 week s later trading update ... $2.40 to $1.00
3. Estia
4. Bellamy
5. Vocus
6. Blackmores

They always provide some creative reasoning for selling ... pay tax bill, retiring, getting married, investing in new business etc...

The fact remains that they would not sell if they thought the shares were too cheap... Knowing how the business is tracking live gives them a great advantage...

Of course they will refute that  they had this information at hand...

having said this, it may not be case in this instance... however it is a red flag...

At these levels I have been looking to buy in but the above has held me back... if it does turn out there is a miss on expectations there will be a savage sell off considering the Director sold prior ...