Never count on that ....eg ....not that long ago the (now former) chairman of CBL loaded up from the market.
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I guess like every rule on the sharemarket there are exceptions...
This morning I was searching the share register of an unlisted company I have shares in.
Was very excited to see all directors and CEO had increased their shareholdings, since the last update.
Very excited.!!...lol.
So I would think that rule is correct 9 out of 10 times.
Certainly very profitable following director Gregg Tomlinson.
Always a good thing for Directors and senior management to have plenty of skin in the game to keep them sharp and highly motivated. I recall eons ago reading some study done in America which suggested a very strong correlation between market outperformance and significant director / senior manager shareholdings...must be good old human nature to work more diligently when your own money is at stake. Far to easy to throw around others people's money on spurious things / pet-projects when none of it is your own, as we have seen countless times before.
Couldn't resist increasing my OCA holding by another one third last week at the $1.00 special.
Now is 25% of my portfolio at an average buy price of $1.08 so still showing a few thousand dollars in the red.
Nice to see it on the way back up today & touching on $1.03. Hope the $1.00 lower limit will be left behind this time.
Craigs have downgraded OCA from BUY to HOLD and decreased TP