…. I read your post with interest, and was a little surprised as to your thoughts. I offer my opinion, Director(s) buys always create investor confidence – always!! Because they simply stand-alone against any test of negative reading. ………. ‘No truth is ever a lie’ ………. Now, the level of confidence created? …. That’s a different question altogether! There are far too many variants to gauge correctly. - Level of buying, timing, company performance and of course, many investors = many different confidence levels!
Re: BEM ….
… In 2012 the questions as to why CSP was not buying more stock was discussed here, and some disagreement resulted. Some thought that, any positive value would be at best, - short lived! Others considered that, with a falling SP (markets dire) attributed in part at least, due to an administrative oversight on the Board’s behalf, CSP had a duty of care, to take any measures at his disposal, to bolster the investors’ confidence and indeed, company value. After all, the oversight resulted in an exploration company having had to stop exploring – not good! The market knows exactly how to measure a self-declaration of an own goal. Negligence is not easily forgotten.
For me, the above, re: CSP is straight forward, he should have bought in. Why? Because the market did expect. Why? Because it is usual practice to do so following setbacks of this kind. The message is most symbolic in its reassurance. It is: The Company’s plans have not been irretrievably damaged, and thus, your chief is now further committed to bring those plans to crystallisation. Then of course there is the small question of his bonus that came into focus, it was taken in the same year as the “oversight”. Any bearing on his personal finances as a result of purchase could have been rendered neutral. So I take a different view, I believe much significance is always attached to Director(s) buys. To strengthen my view I would ask: What are any investors very first thoughts (confidence levels) when learning of Director(s) sells in a company to which they have invested?
In view of the above comments I should stress that, I do think that CSP has achieved much over the past twelve months. The “national interest” is of immense value, and did not come about without heavy input from himself. … atb
Yes, I agree with that Ed, it is difficult to tell which way it will go. The MMs will play on nerves in this bearish climate as well, so both potential buyers and sellers have much to contend with. I'd like to see a few steady days now, for it to settle again until the next news, but preferably settling back into the double figure zone. That would be good to see.
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