RE: Re . ED4 Jul 2018 12:34
No it doesn't but I guess you would know that....
A purchase by a director in the company he or she runs is a classic signal for investors.
Directors can buy and sell shares in their own companies during periods when they are not aware of any information which the general public is not aware of which might cause the price to move: If they have such "insider information," they are not allowed to trade.
However, there is an important distinction between insider information and insider knowledge. Directors have insider knowledge at all times.
No one has a better insight of a company's prospects than its directors. Even if there is no takeover in the air or no breakthrough, a company director should know the business inside out. From the skeletons in the cupboard to the progress in the lab to the prospects far into the future, directors have a picture no one else can expect to see.
So when they sell, it's a good bet you should sell too, and when they buy it is a good tip things are looking up, or, at worst, the share price is looking cheap.
Most PLC directors are not rich men. They might have a pretty good income, but like most people they live up to their means so that any purchase is felt, even if it is for modest sums. No one throws thousands down the drain on a whim, so a director’s buy normally comes straight from the heart and often a hard heart at that.