you have a very niaive view of how the markets work.
"he knows when to sell". That is completely incorrect.
I work as a director in a listed company. I can assure you that the market hardly ever acts in the way we expect it to. We often cant understand why our sp is so low. Other times we have queried whether it has been too high. We have released announcements we thought would cause a significant lift in sp..and it hasn't...and equally we have put out some very disappointing announcements that we expected far worse reactions from. Currently, we are in better shape than we have been for 3 years..yet the sp doesn't reflect this. My point being, to think that because one is close to a company that they have a strong idea of what the sp should be or will be on release of future news is plain wrong. Yes, the director might know the upgrade is coming... it seems we all know it... but does he know that when it is announced it will make the sp spike? No. It might do... equally it might do nothing or fall - the market we are currently in causes strange things to happen. Would that director have been sitting there 12 months ago thinking the sp was fair value? doubtful. He probably thought it was way undervalued and couldnt understand why it sat there for a year without moving despite some good news in that time. If, as a director, you based your selling of shares purely on when you thought the market was fair valuing your shares... well you would lead a very stressful life inside and outside of work. So he sells some shares when he has 3 times more value in his grasp than he has had for the last 2 years. He sells when his outside circumstances tell him it would be nice to have some more money... for whatever reason. Good on him. Happy living to him.
If he had sold 100% I would have a totally different view as I believe directors should have skin in the game...but he hasnt done that.
And as for comments that people earning that sort of money shouldnt have cash flow issues...well I can prove that theory wrong myself. As one poster said, the more you earn the more you spend. Often too, you "earn"the right to more leverage and more opportunities to be really hurt by a tough market such as this. So dont simply take your situation and calculate the extra cash you would have if you earned more... it doesnt work that way (nice if it did though!).
VAN Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
