editorWith the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunging around 10% over the past six months there is without question select investment opportunities beginning to emerge.
The recent sell-off has coincided with the release of interim or full year results for the majority of ASX listed companies which has added to the volatility caused by global-macro issues.
This post earnings results period is also an important trading window for executives at ASX-listed companies because in general executives have restrictions placed on when they are allowed to buy and sell shares – particularly in the lead up to releasing results.
When it comes to seeing what the "smart money" is up to, no one is more attuned to a company's fortunes than the insiders running the show. So a review of filings of changes in directors' interests can be telling.
It's also worth remembering the following saying:
While there can be a number of reasons for an executive to sell shares in their company, there is only one reason they buy!
Here are five companies that have received a vote of confidence from their directors:
- Amcor Limited (ASX: AMC) – one director added 20,000 shares to his holding at a price of $13.68 per share – a substantial investment in the packaging giant.
- Boral Limited (ASX: BLD) – no less than four directors of the building materials company have topped up their holdings with the purchases occurring at prices between $5.44 and $5.71.
- Carsales.Com Ltd (ASX: CAR) – a director of Australia's leading online automotive classifieds business acquired a further 3,112 shares at approximately $9.55 each.
- Ardent Leisure Group (ASX: AAD) – newly installed CEO Deborah Thomas increased her holding in the entertainment group by around 25% at a price of $2.50 per share.
- Myob Group Ltd (ASX: MYO) – a director increased his holding by around 50% at a price of $3.34 per share.
While a director purchasing stock is not a reason in itself for outsiders to follow suit, it is another angle and potential positive to consider as part of your overall company analysis.
