3322 days ago
The conventional wisdom is that you should follow the “insiders” that is the board in terms of buying and selling shares. Sometimes the conventional wisdom is wrong. We can start with buys.
A director share buy is only significant if it is truly material in terms of the net wealth and salary of that director. Looking at many director buys I almost think they are tantamount to market abuse. They are not material and their sole aim appears to be to support the share price. One might refer to the serial Quindell (QPP) buys announced a day at a time after Gotham as a case in point. This was nothing more than an exercise in PR – the willingness of any of those buying back in April 2014 to subsequently dump all their shares at far lower prices clearly demonstrates that.
