What are the rules regarding Director’s share purchases?

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Question asked 10/09/2022

What are the rules regarding Director’s share purchases?

Hi James & Team, Thanks for your good work. Your WHC coal stock recommendation is a performance enhancer for my portfolio. I am only aware of Deterra as a mining royalty stock. Would you please mention other royalty stocks & rank them in order of investment potential? There is an issue regarding the director's share purchase in JLG which has bothered me as a shareholder. I am referring to the 3/6/22 & 9/6/22 announcements where a director purchased shares before the release of results. Am I being paranoid about the timing of purchase & the release of results? Thanks

Answer

Hi Sidney,

Two main questions here which I’ve answered separately:

1 – Deterra Resources (DRR) is indeed primarily an iron ore royalty business but as were neutral at best the bulk commodity its not on our radar at this stage. As far we are aware, DRR is one-of-a-kind in that respect.

2 – Director transactions can be eye catching at times on both sides of ledger but as long as they operate within the companies guidelines its really just waisted emotion although I have been guilty of this very thing e.g. a2 Milk (A2M) comes to mind. At least when directors buy such as with Johns Lyng Group (JLG) good news often follows.

MM often watches directors moves for signs of what comes next for a company which makes more sense in the bigger picture.

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