CHRIST­MAS FRENZY

Finweek English Edition - - INVESTMENT - Simon Brown

Direc­tors of listed com­pa­nies have been buy­ing and sell­ing like crazy with one­week pur­chases (for the week ended 7 De­cem­ber) sit­ting at some R32m, while sales are around R85m. A cou­ple of read­ers have asked me if this is cause for con­cern or if direc­tors are just plump­ing their credit cards for Christ­mas. Broadly, the an­swer is that there’s no cause for con­cern, direc­tors are usu­ally net sellers as they re­ceive part of their pay­ment in shares and fur­ther they’re of­ten sell­ing in or­der to be able to pay for op­tions they have been granted (they need cash for the pur­chase price). That said, al­ways keep an eye on deal­ings and a trend of on­go­ing sell­ing could be con­cern­ing, while strong buy­ing should be viewed pos­i­tively. si­monb@fin­week.co.za

@Si­monPB

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.