Home Value Investing INSIDER BUYING TO SELLING RATIO ON THE SGX HITS AN ALL TIME...

INSIDER BUYING TO SELLING RATIO ON THE SGX HITS AN ALL TIME HIGH

Buysell Ratio

Source: Asia Insider Limited

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.

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