I think you are forcing yourself to find a cause (director buying shares) to explain an effect (stocks undervalued). I will give you one to disprove your theory. NiHsin buy back 15 million of their own shares over the past 10 years, too bad the share price is still the same since 10 years ago.
Director buyback is just a positive sign, nothing more nothing less.
Again it depends how you define risk, if a director keep buying shares and he plans to reap his reward 20 years later. On the other hand your own time frame is to make money in a year, your risk is 20x larger than his. He can sustain 19 years of losing money and make money on the 20th year but you can't
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
spectre007
1,410 posts
Posted by spectre007 > 2016-01-18 17:15 | Report Abuse
Bornoil will be one of the next catalysts I reckon