Director Dealings

[Terra]

Are director dealings always perceived as a negative thing? 173200 SAN shares sold and no movement in the price. Volumes also quite normal.

[#2]

Nope, when they buy shares it is often seen as a positive thing. There are many reasons why a director may be selling his/her shares, so it's not necessarily a negative thing. Well, according to Peter Lynch anyways.

[Ninja]

Terra, a director could be selling because he knows the company is up the swanny.....he could also be selling because his wife just bought her 50th pair of Manalo Blahnik's and the bank is repossesing his porsche to pay the credit card bills. it means nothing unless you understand his/her motive....trade the price, watch your charts, ignore the noise.

[#4]

You also have the right to call the director and ask. He is obliged to answer you. Might not give you the real deal but only you will be able to tell from their answer.

[Maggie]

Sanyati, yes it is a negative thing

[SimonPB]

you certainly can ask, but the director is not obliged to answer, beyond declaring the transaction to the JSE ..

[Terra]

Thanks for your thoughts. Always interesting to hear different opinions.

[Whatsup]

Directors may elect to exercise their share options, that is to say they can buy shares at a predetermined price. Generally share options are in place to retain key skills and as part of their employement contract and also obviously for the director to grow the business.Share options are generally stuctured over a period of time, with tranches made available,these are shown in the companies annual accounts.You can see in diectors dealings they may purchase and sell the same quantity in one day and pocket the difference to pay for the Ferrari

[CHATTYCHAT]

Herman Mashaba-(non-executive of Stefanutti Stocks Holdings) sold so many shares directly and indirectly beneficial in the last 2 weeks I think he's probably sold out his entire holding in SSK - it could be good or bad. Whether the market responded to HIS transactions is not clear, bur the share did take a beating from some impulse - and there was nothing else from which to draw a conclusion. What I would imagine is that his colleagues new aforehand of his intention and didn't care, therefore his transactions. Whatever the case may be, I perceive this action as negative, even though it be the only director selling.

[prancing_horse]

In SSK's directors case,I would say it's a case of "easy come, easy go"