Several articles have appeared over the last few weeks about share purchases made by the Quindell Board of Directors. Some suggesting these purchases are token gestures.
This is an alternative view.
1) In the last 12 months, Directors of Quindell have invested over £1m in shares.
This gives a strong indication the Board of Directors have 100% confidence in the company.
2) Average price paid per share £2.39.
This indicates the board consider that at a share price of £2.39 the shares are a good investment opportunity.
3) Money locked in.
Directors buying shares is a huge commitment. When the share price rises they can’t easily realise any profits as this sends the wrong message to the market.
4) Non Executive Director buys
Non Executive Directors are paid a nominal sum by Quindell to carry out their duties. They have no real financial ties to Quindell.
Any share purchases they make are therefore highly likely to be because they see this as an investment opportunity. They would know more about the business than any normal private investor.
5) Rob Terry share purchase.
Rob Terry has stated he will purchase shares when he is able. This hasn’t happened yet and can only be for two reasons:
a) He has information that is not in the public domain.
b) He is going to make his purchase at a time that best strategically supports the business.
With Robert Bright purchasing 100,000 shares it is highly likely that Rob Terry’s purchase will be for 100,000 or more shares.
The share purchases are not token gestures. They clearly indicate the Directors are making a significant commitment, providing a visible indicator to private investors as to what the future holds for Quindell.