Director buying history on BOW has always preceded a...

Director buying history on BOW has always preceded a considerable rise in price. Like everything in the market it is just another indicator though. So what does it mean?

Personally I am not topping up right now as I am already stacked with BOW, however, it should raise a few serious questions to other investors/traders, here are a few to stir interest:
1. The director is waging that the price will increase as a direct result of their and the companies efforts

2. Do they have the requisite understanding of their results achieved to date and what they mean in the industry?

3. Are they aware of the strategic direction?

4. As they already hold a considerable holding in the company, why risk more unless there is clear upside?

Directors+Mgmt are now sitting pretty with around 10% of the company as well as a further 16m options or around 5%.
For those of you unaware as well, Arrow also hold a small <2% holding.

I think I plucked that we should be seeing Reserve results from Blackwater permit shortly, as well as initial drilling results from the Norwich block which could be price catalysts; not to mention a recovering market and any corporate action.

As a quick summary of director purchasing activity, I have correlated the activity with before and after action surrounding the buying:


PRE Award of the permits in Sep 08
BUY Prefontaine, Mather, Bizzell enter a signifcnat buying phase from Sep to Dec 08
POST Rights issue announced and a very successful response from market


PRE Drilling to commence, rights issue wrap up, and initial 3P reserves
BUY Prefontaine, Mather, Bizzell all take up significant amounts in rights issues as well as some large on market purchases Apr/May 09
POST Excellent coring results achieved and first DJ reserves achieved


PRE considerable reserve target upgrade along with a significant recapitalization of the company to the tune of $100m underpinning a significant development phase over Nov/Dec 09
BUY Mather, Bizzell, Stack, Prefontaine expend around $1.5m on SPP take up and market purchases in Nov/Dec 09
POST ?

Cheers,

SF