Board Members buying shares?

[fizz47]

On many sites you can see the deals the Board of Directors make on buying / selling shares on the company they are on a Board of.

How good of an indictaor is this that there is something about to happen in the company?

[Kudos]

Should'nt be as this (I believe) is a form of insider trading.

[z4chris99]

fizz47 said:

On many sites you can see the deals the Board of Directors make on buying / selling shares on the company they are on a Board of.

How good of an indictaor is this that there is something about to happen in the company?

sometimes a good idea, sometimes they are just exercising a stock option they were awarded a few years ago and its now profitable to exercise it.

and no. not insider trading.

[Eric Mc]

Would there not be a requirement for board members to disclose IN ADVANCE the fact that they wwere intending to buy or sell shares and the reason why?

[fizz47]

For example - there have been a few AIM listed companies I have been keeping an eye on - in a couple of these some of the Board Members have purchased stock- a week later the stock has had reasonable positive shifts.. Just wondering how much one should take into account this information before making your own decision to buy.

[Lardydah]

The positive shift could well be solely down to the director buying shares, and people adding to/opening new positions on the back of this news opposed to something 'about to happen in the company'.

[sideways sid]

There are a number of funds that invest/divest purely on the back of Directors Deals notifications. Go and check their performance.

[fizz47]

sideways sid said:

There are a number of funds that invest/divest purely on the back of Directors Deals notifications. Go and check their performance.

any particular names?

[sideways sid]

fizz47 said:

sideways sid said:

There are a number of funds that invest/divest purely on the back of Directors Deals notifications. Go and check their performance.

any particular names?

SIM:
http://www.hedgeweek.com/2011/09/05/130120/sim-lau...

Citi:
http://www.risk.net/structured-products/news/15140...

Directors Deals provides data for you to analyse but is not a fund:
http://www.directorsdeals.com/pub/dev/ourcompany.p...

article relevant to original question:
http://www.thisismoney.co.uk/money/investing/artic...

[fizz47]

sideways sid said:

SIM:
http://www.hedgeweek.com/2011/09/05/130120/sim-lau...

Citi:
http://www.risk.net/structured-products/news/15140...

Directors Deals provides data for you to analyse but is not a fund:
http://www.directorsdeals.com/pub/dev/ourcompany.p...

article relevant to original question:
http://www.thisismoney.co.uk/money/investing/artic...

Thanks ! Very useful

[Cheib]

Doesn't necessarilly mean very much....a board member could just be selling because they have too much wealth tied up in the company that also employs them. I've had share awards in the past and always sold them because of I don't want shares in a company that is also my employer.

Directors don't always see the wood for the trees either...think RBS rights issue before they were bailed out.