That only applies when a business isn't going to zero. The company promised dividends to me before and they didn't come, so I do not trust management.
I wouldn't trust that directors sold shares without reporting to the ASX 'by accident'. They are company directors and should know better - directors of other companies don't do this. They know more than you do, it may be best to follow their lead.
XPD Price at posting:
3.3¢ Sentiment: Sell Disclosure: Not Held