Company Director Buying - Beginner's query

[mista200]

Is it worth taking into consideration the list in "The Age" of which company directors buy and sell shares in their own companies?
If so how much.?

 

[doctorj]

Re: Noob question

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.

 

[It's Snake Pliskin]

Re: Noob question

Sometimes directors need money and sell their holdings. It doesn't suggest everyone should sell as well.

 

[Smurf1976]

Re: Noob question

Apart from the Age, is this info available on the internet? Where? Thanks.

 

[Milk Man]

Re: Noob question

Sometimes directors need money and sell their holdings. It doesn't suggest everyone should sell as well.

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.

 

[RichKid]

Re: Noob question

There is some prior discussion of director buying/selling here on ASF, you might find more material if you do a search.

 

[It's Snake Pliskin]

Re: Noob question

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.

It comes down to choosing the right stocks with good management to mitigate the effects to an extent.

 

[TjamesX]

Re: Company Director Buying- Beginner's query

Has been also discussed here;

https://www.aussiestockforums.com/forums/showthread.php?t=607&highlight=Directors+interest

TJ

 

[tech/a]

Re: Company Director Buying- Beginner's query

Still get the Inside trader.

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.

 

[ozewolf]

Re: Company Director Buying- Beginner's query

Is it worth taking into consideration the list in "The Age" of which company directors buy and sell shares in their own companies?
If so how much.?

Surely a start, however it always works to your own benefit to research beyond a single publisher.

ozewolf

 

[Pommiegranite]

Does anyone know the windows as to when directors can buy/sell in relation to the release of quarterly & annual reports?

Thanks

 

[kam75]

Is it worth taking into consideration the list in "The Age" of which company directors buy and sell shares in their own companies?
If so how much.?

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

 

[Sir Osisofliver]

Does anyone know the windows as to when directors can buy/sell in relation to the release of quarterly & annual reports?

Thanks

It's not a hard and fast rule Pomm, it's a guidance note of the ASX available here.

http://www.asx.com.au/ListingRules/guidance/gn22_disclosure_of_interests.pdf

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.

Cheers

Sir O

 

[prawn_86]

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