I wouldn't treat it as a buy signal, but if I was holding a stock that had a director buy, I am generally not displeased.
If several different directors of the one company begin buying large quantities of shares, then this is another matter. Its probably worth giving the company another look.
Same goes if several directors are selling large amounts.
Yes, but I was watching RMD recently and it had a 10%+ pullback on what seemed to be one director selling 2000 odd shares- about 16k worth. What should happen and what does is not always one and the same.
To answer your question smurf (somewhat), I find it on the asx website under company announcements. Its not a list but you should be able to find what youre looking for.
Yes, but I was watching RMD recently and it had a 10%+ pullback on what seemed to be one director selling 2000 odd shares- about 16k worth. What should happen and what does is not always one and the same.
I actually ran a few tests on some back issues and found that the COMMON result was for stocks to trade CONTRARY to directors buying and selling.
There are great results supporting buying and selling but I didnt find anything supporting a stratergy based solely upon this.
However using it as a method of choosing a universe of stocks and then EITHER using technical analysis to buy into a breakout either way OR Fundamental analysis to buy or sell an announcement could have merits.
Not worth taking into consideration at all because the buying or selling of shares by directors in their own companies may not reflect the opinion of the rest of the market.
regards
Theres a little bit of leeway in the guidance so for certainty you would need to check the company constitution.
You might also want to take into account whether the comapny has a large registry of employee shares (not directors) as these will have an available buying/selling window as well. Mostly this information is available at prospectus stage - otherwise go e-mail the managing director and ask him.
Its only the companies that set 'non-binding' timeframes when directors that can and cant buy shares. There is no one governing rule by ASIC, and so far this year there has been over 300 breaches of the individuals companies policies, so its all a crock anyway.
Basically directors can buy and sell whenever they want, news or no news. ASIC should set some standards IMO