So the ratio of insider buying to insider selling has hit an all time high of 4.7x.
One other point which I find really interesting is that the greatest cumulative value of buying and selling was done in 2007.
It seems half the people in the room drank their own cool-aid.
Thoughts on Insider Buying/Selling
I don’t think we have enough data here to form a clear conclusion from the Singapore markets. But there’s been quite a bit of academic research showing that heavy insider buying does lead to out-performance.
For me, its a matter of common sense.
If I think the company is cheap, but the Board of Directors are engaged in heavy selling, I would re-examine my thesis very slowly and carefully again.
Likewise, if the directors are buying heavily, that’s a net positive to me.