Management Sell Down, page-87

directors have the right to sell shares to crystallise money same as any other shareholder.

director shares cant be in a permavault otherwise they;d be a useless payment/incentive

i read a report recently that showed 'insider' selling was never a good indication of when to buy and only a moderately useful indicator of when to sell

eg if you have a look at the big cap stocks in US - there was a massive slew of insider selling in sp500 /DOW stocks early last year - which was the wrong time to sell in terms of sp - but the right time for them because they had big tax bills on cap gains from the post election surge into christmas

the only way to evaluate it is on a stock specific basis.

with BUD i dont care whether one takes the CEO's rationale at face value or not. even if you choose to be negative - it really only infers that he's taking a little money off the table at around what's been its trade weighted high price over past ~3 years. it spent ~3-4 months above 20c and 3 years below

id regard that as prudent but hardly calamitous

personally though i take the rationale aat face value because i know execs who;ve faced exactly the same problem of a tax bill on a 'theoretical' capital gain before

its regarded as poor financial management at a personal level to use cash to meet tax bills when you have paper that has a fluctuating value thats relatively highly valued at the time.

if you start paying cash for paper you earnt 'for free' and the paper then falls further in value - then you;ve compounded your 'loss'

any financial adviser worth their salt will say 'make no assumptions' about future value of the paper. so theyll always advocate using paper sales to pay for paper costs

none of that implies that paper (bud shares here) doesnt have a potentially higher future value - its simply the difference between known and unknown.

its saying 'bank a little' here. not sell everything

and as someone said in an earlier post - the stock appears to be trading a fair way north of what currently known earnings would support - presumably because investors or optimistic about growth shock potential

but thats hardly unusual. AVZ is currently on $750m mkt cap and its got 4 drill holes and is prob 7 years at least from any cashflow

this is the function of the 'goblin hole' - there's a vaccuum of information on which to make investment decisions.

so buying and selling has to be regarded as speculative

directors selling shares -for whatever reason - doesnt say whether that share price is high or low. it just reflects that future sp is 'unknown'