Hope this goes down a bit more before I put my foot in....

Hope this goes down a bit more before I put my foot in.

Directors sell shares for several different reasons- i.e. divesting some shares to diversify their asset, buying a property, buying a property for their family or the obvious reason being just taking profits. They deserve to sell their share as much as anyone else investing in the company.

While insider buying is usually a good sign, don't be alarmed by insider selling, unless there is a lot of it. Insiders tend to buy because they have positive expectations, but they may sell for reasons independent of their expectations for the company.

Look for clusters of activity by several insiders. If a company has more than one insider trading similarly over a short period, there's a sign of a consensus of insider opinion. Also, large transactions mean more than small trades.

It's important to know which insiders to watch. Insiders with proven track records with their Form 4 activity should be watched more closely than those with little or poor past records. The most telling trading activity comes from top executives with the best insights into the company, so look for transactions by CEOs and CFOs.

There are heaps of different examples of directors buying, share price goes up, directors selling, share price goes up, directors buying, share price goes down, directors selling, share price goes down. I wouldn't put too much merit into it.

Will take a position when the dust has settles.