When directors bail out

‘What are some of the more stomach-churning director share sales you’ve seen on the ASX in recent years?” I tweeted on September 5. It touched a nerve and I received replies with examples from many investors (find it on Twitter at my handle@GregHoffman15).

Every serious investor I know pays careful attention to directors’ transactions. And none of them likes to see directors selling. It may not always be a negative but, in the rough-and-tumble world of the ASX, investors are constantly on the lookout for signals from those who may know more than they do. So when a director, who has full access to the business’s numbers, plans and inner workings, decides to cash out, most investors feel the hair on