Buy Hold Sell, by Livewire Markets
Business:Investing
Millions of dollars of shares are sold and bought each month by company directors. Often, investors watch these transactions as a signal that leadership teams know something we don't. So should you buy or sell if leadership teams are too?
Firstly, there are a variety of reasons (or maybe excuses) why a director may sell stock in their company. Take tax reasons, for example, or divorce settlements (half of all first marriages end in divorce, after all), or just because they need the cash - to purchase a new home or holiday house, for instance.
Of course, it could also mean these directors think their company's shares have run too hard - or that there are troubles on the horizon that the rest of the market doesn't know about, yet.
Interestingly, FirstLinks found that companies tended to perform worse if there had been director selling over a six-month period than companies where no director sales had occurred.
That said, there's only one reason a director would buy shares, and that's because they think their stock's share price is about to go up.
So in this episode, Centennial Asset Management's Matthew Kidman was joined by Auscap Asset Management's Will Mumford and IML's Michael O'Neill for their analysis of three stocks where director selling has occurred over the past month.
Plus, to even the score, they also name one stock they have been buying on the back of reporting season.
Note: This episode was filmed on Wednesday 6 September 2023. You can read an edited transcript below.
https://www.livewiremarkets.com/wires/buy-hold-sell-3-stocks-directors-have-been-selling-and-2-big-buys/
Buy Hold Sell: 3 hot copper stocks (and 2 high-conviction calls)
Buy Hold Sell: 3 undiscovered gems (and 2 overhyped duds)
2 big buys (and why the worst could be over for small-cap investors)
Buy Hold Sell: 5 undervalued small caps with big growth prospects
6 ASX-listed products for the risk-loving and risk-averse investor
4 adviser-approved ETFs for 2023 (and top tips to make your portfolio work for you)
Buy Hold Sell: 5 of Livewire readers’ top ETFs for 2023
Buy Hold Sell: 3 heavily sold-off stocks (and 2 now on fundies’ radars)
The 10 best ASX management teams right now
Buy Hold Sell: 3 cracking results and 2 disappointments
Buy Hold Sell: 3 stocks making headlines (and 2 with major catalysts on the horizon)
4 stocks for offence and defence for today’s volatile markets
Buy Hold Sell: 4 quality stocks for value AND growth
Buy Hold Sell: 3 stocks with ultra-low PEs (and 2 darlings to drop)
5 high conviction calls from 2022’s top-performing fund managers
Buy Hold Sell: 5 stocks for the run in resources
Buy Hold Sell: Your top large caps for 2023 (and 2 that should have made the list)
6 stocks for a full portfolio reset in 2023
Buy Hold Sell: The top small-cap picks for 2023 (and 2 fundie favourites)
16 funds the professionals would invest in
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