# Directors Interest Change & Director Trading



## TjamesX (5 November 2004)

Just a question for anyone out there...

How does a change in director's interest announcement affect your views of the share price? Do you take the - 

1) he/she is doing it for their own reasons and it doesn't reflect any confidence or lack of in the companies share price? or 

2) Directors would tend to know more than information than the market and changes in their interest should be watched carefully? or

3) other (I couldn't think of more on the spot)


In my very limited share owning experience I have probably tended toward option 2, depending on the amount and type of interest change (ie options excercise or not). I sold ION shares for a 8% loss (mid August) after a director sold $600,000 worth of shares, two weeks later the share price dropped around 25% in one day, since then it has traded down a further 10% . That was my first ever sharemarket experience (i am happy to report that things have turned for the better since)


----------



## RichKid (5 November 2004)

*Re: Directors Interest Change*



			
				TjamesX said:
			
		

> I sold ION shares for a 8% loss (mid August) after a director sold $600,000 worth of shares, two weeks later the share price dropped around 25% in one day, since then it has traded down a further 10% . That was my first ever sharemarket experience (i am happy to report that things have turned for the better since)




I would say your 8% loss was a positive experience from one view since you cut your losses before they became gigantic- imagine if you'd stayed in! Still 8% is a fair bit to lose, glad things have improved.


----------



## tech/a (5 November 2004)

*Re: Directors Interest Change*

There is a company that makes a living reporting directors change of interests.

There results are pretty impressive as well.

http://www.weeklystockpicks.com.au/pastresults/default.asp

You can register and they will send you a stock pick of the month every month.


----------



## TjamesX (5 November 2004)

*Re: Directors Interest Change*

Thanks RK

8% is a large figure but as it was my first stock I didn't have that much in it, so no harm done - interestingly the stock recommendation came from a lecturer at the securities institute who works in the industry, he thought they were oversold.

I'm still interested if changes in director's interests have affected any of your trades, and how you view them??


----------



## TjamesX (5 November 2004)

*Re: Directors Interest Change*

TechA

Thanks, have bookmarked the site, I didn't think people would base a whole strategy on it - so there you go.

I'm not sure if I would be paying the $299 to get the report, it would be good to know what there stats were for all recommendations over time - but as I'm not as interested in trading I don't know if it would be for me. I have just tended to follow it for stocks that I own or are on my watch list.

Cheers


----------



## tech/a (5 November 2004)

*Re: Directors Interest Change*

RK.

Thanks Fantastic thanks for the link.

Should run a test portfolio trading this stuff coupling with technical analysis.

This looks like a good start.
What do you think.


----------



## RichKid (5 November 2004)

*Re: Directors Interest Change*

Yes, Good idea, also see MPI from the same list. Still not settled down yet.

With MIR wonder if the horse has bolted or if it has further to go?
Good to test it out though, let's see how it goes- worth a new thread IMO. I'm watching MPI with more interest, I think it may fall back a bit before surging (it may not)- possibly oversold.


----------



## RichKid (29 March 2005)

*Re: Directors Interest Change*

The huge director sales not long ago would have foretold what happened last week to Fortescue Metals- Twiggy Forrest is a rich man. Maybe we can keep this thread going and save ourselves some cash....


----------



## RichKid (29 March 2005)

*Re: Directors Interest Change*



			
				tech/a said:
			
		

> RK.
> 
> Thanks Fantastic thanks for the link.
> 
> ...




Did you get around to doing the test portfolio Tech?


----------



## tech/a (30 March 2005)

*Re: Directors Interest Change*

Rich.
No .
I'm about to have a look around NZ for a while and then over to Singapore a bit later.So wont have time (or any interest    ) but will at some time.

Damn just remembered that disk for you.
Ill do it today---sorry mate!!


----------



## RichKid (30 March 2005)

*Re: Directors Interest Change*



			
				tech/a said:
			
		

> Rich.
> No .
> I'm about to have a look around NZ for a while and then over to Singapore a bit later.So wont have time (or any interest    ) but will at some time.
> 
> ...




Have a great trip Tech, hope you enjoy the change of scenary. You might get to check out the local bourses if you're lucky ; ) Thanks too for remembering the disc, hope you get a chance before you leave.

As for the Directors interests, I think it's better to filter the large buy trades (if going long) with some sort of TA and fundamentals or it'll become too time consuming and inefficient. If we can come up with a reasonale system maybe we can take turns on ASF compiling data, a different member can do it every week on an excel spreadsheet and someone can plug it in on the weekend (you or GP or someone with the proper software). 

The other option is to just look for all large dir transactions affecting current holdings or those on your personal watchlist.


----------



## RichKid (4 November 2005)

Recently got very annoyed with QGC directors for not disclosing buying earlier but apparently ASIC gives them 5 days (should be 24hrs imo as it's quick to lodge electronically and they do know way before they buy/sell to be prepared to release the info), 5 days imo is too long for these small co's as sp's jump a lot. Note that delayed/innacurate releases have to be taken into ac when designing a system that trades these anncts.



> DIRECTORS’ SHARE TRADING COMES INTO QUESTION
> www.aireview.com issue 82  27Oct05
> 
> It is pretty much a given in this world that if directors of listed companies fail to register a sale of shares in the company in the statutory time allotted, immediate assumptions of some form of insider trading will be made.
> ...


----------



## johenmo (14 December 2008)

Am curious about directors since lost $2K in BNB (glad it was a dabble in BNB).  Came across the site below which may be helpful to some.  And didn't want to start a new thread.

Registration is free.  

Cheers


http://www.directorstransactions.com.au/Directors/?letter=E


----------



## johenmo (14 December 2008)

Here's an example - took me more than 20 mins to work out how.


----------



## nunthewiser (14 December 2008)

you can get director dealings daily here

http://www.businessspectator.com.au/bs.nsf/filter/Director+Dealings?opendocument

you can get major holder daily dealings here.....


http://www.businessspectator.com.au/bs.nsf/filter/shareholder+notices?opendocument

all free , all daily , all easy to read

haveaniceday


----------



## johenmo (16 December 2008)

What I like about the site I "found" is it shows a trail (of success/destruction/add your own term) of the directorships.  It's easy to read - I couldn't figure out how to stick the screenshot in!

But everything helps.


----------



## tech/a (1 December 2020)

tech/a said:


> *Re: Directors Interest Change*
> 
> There is a company that makes a living reporting directors change of interests.
> 
> ...





Let me re phrase from 2004

There WAS a company!!-------------


----------

