Gives mew confidence3. When directors buy, it is rarely an on...

Gives mew confidence

3. When directors buy, it is rarely an on market purchase. Most of the time directors are getting issued shares in lieu of a performance bonus, a dividend reinvestment plan, a share issue, an off-market transfer, a movement from one entity to another, a share purchase plan, as a bonus or through the maturing of options. What you want to look for are director transactions that are "on-market" transactions, bought with cash, and if they only buy a small amount, don't dismiss it – it often means more when a poor director buys shares; it is more significant than a rich director topping up.

Quote from article: SMH Follow the money: how to track when company directors trade shares
By Marcus PadleyMay 29, 2017