Sir John Banham, Chairman of Johnson Matthey (JMAT, 1600p), yesterday bought 7400 shares at 1604p, investing £119,000 and taking his holding to 15400 shares.
Is this significant as a signal for investors?
Yes:
First purchase that I can find for any director looking back to 2004.
First purchase by Banham since he was made Chairman in April 2006.
Decent size in £.
Doubles size of holding for Banham.
No:
Sole buyer. Need to see other directors following Banhams lead by investing their own hard earned $$ before I invest in JMAT.
All the previous ‘acquisitions’ by directors have been through ‘Long Term Investment Plan’ options, whereby directors exercise the options and sell off around 40% to satisfy their tax liability.
So the jury remains out, but could change if/when we see other directors buying. As it stands, this is a WEAK SIGNAL.
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September 10, 2008 at 12:13 pm
Johnson Matthey- first directors purchases in five years « followthedirectors… a study of directors share dealings
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