Directors buying shares

[Mouse]

Hi,

I've been watching NDL (Neurodiscovery) for a while now and noticed that every few weeks at least one director is buying up to $5000 worth of NDL shares. The price has been going mostly sideways, and they don't seem to be selling.

I was wondering what more experienced people would read into this situation (if anything).

Thanks in advance for any help.

cheers
Mouse

 

[tech/a]

Did some research on director buying sometime ago.

Like most it made sense to me that if a Director was buying large parcels then that should be a leading indicator.

I found 12 mths of director buying.
Was suprised that it appeared that the inverse was the case.
More often price fell away over time.
Sure there was instances where price flew within a few months but nothing that could give you confidence and nothing that indicated which Director buying was to lead to price increases OR decreases.

Pretty random!

 

[TheRage]

I've also noticed in small companies where directors have a large share of ownership that them buying shares help preserve share price much like company buybacks. In larger companies the parcel's traded are insignificant and as Tech said don't tend to affect price or maybe price may go backwards. It could be that the price retracts because the director sees the price as a value buying opportunity but the market still think the share has lot of catch up. I don't pay a lot of attention to director's buying shares more so the amount of renumeration for performance. I don't think Australia is tough enough on director's for underperfomance.

 

[nioka]

I don't think Australia is tough enough on director's for underperfomance.

You can say that again and again and again.