I’d have to agree with Noddy. The Codan trading update was a relief, but not unexpected. The CEO buying shares was a vote of confidence in the business. Did the market react? Not really, a slight kick in the share price before falling back to where it was within a week. What is unexpected is the lack lustre reaction to the recent trading update by the market now.
If however the CEO sold down shares 3 weeks before a negative trading update, that’s a totally different story. This happened with Nufarm shares 12 years ago which resulted in a successful class action. I was caught out in this one. I haven’t trusted Nufarm management ever since. Just reading some of the straws on Nufarm recently it makes me wonder if they could be up to their old tricks again.
Disc: Codan Held. Nufarm - once bitten…