NIS continuing to meet expectations, trading profitably

bertbell posted,

"Directors buying at Xmas is often seen as a desperate attempt to influence financial hacks to include a company in their New Year `ten to follow`.
It hasn`t fooled the MMs, they dropped the price by 1p AFTER Fryer made the purchase on the 23rd."


It really makes me laugh when someone tries to suggest that DIRECTOR
BUYS are a bearish sign 'cos they're clearly an act of desperation.



At the top of the 1999/2000 bubble DIRECTOR SELLS were said to be bullish
signs as they were purely to 'aid liquidity'/'allow others to join the party'.

Of course, this was complete bollox - people believed this rubbish as long
as the bubble continued to inflate. Then the bubble burst, the markets (particularly techs) tanked and everyone realised that the directors were
simply cashing on market madness and selling at/near the top.


One of the last sunday's papers suggested that across the market director
buys outnumber director sells by 10:1 - that's a HUGE BUY SIGNAL.

The fact is that directors (including NIS's) are buying their companies'
shares 'cos they are aware that the market undervalues them. The notion
that all these directors are simply throwing their money into a desperate
attempt to save their failing companies is absolutely laughable.


The market won't listen because three years of falling prices have entrenched doom 'n' gloom and a general bearish feel so deeply.

It'll take a while for the market to wake up, once it does and prices rise
again commentators will start to (correctly) point at the fact that heavy
director buying was, after all, a BUY signal.