Previously, we talked about share buybacks. This occurs when management uses its own company’s cash to repurchase its shares from the open market.
If the CEO/directors used their OWN money to repurchase stocks of their own company from the open market, what would you think of the stock?
Below is a snapshot of the company’s announcement, listed on SGX. On the rightmost column, it is stated that there were changes to the Director/CEO’s interest in the company. Notice that in the purple box, there were a lot of transactions in August 2015.
Source: SGX Announcements
If you click on one of the links mentioned above, the details of each transaction will be shown. On 18 Aug 2015, you’d noticed that the Director/CEO purchased 55,000 ordinary shares from the open market at $1.359:
Source: SGX Announcements
Wonder which director would spend close to S$1 million to purchase a stock? Find out here!
