RE:RE:RE:RE:RE:Jeffry Bell bought 2000 shares at 26.40
I am certain we could find many examples of management buying shares for the wrong reasons or good managers doing a great job with little or nothing to lose (not invested). But i know for a fact that in general, the motivation is not the same.
The best example lately (for me), Alain Bouchard founder and ceo of Aliments Couche-Tard. I know very little about the company or the guy, but i know one thing for sure, him, the co-founder and their high ranking officers all beleive in this company. Lately, price share dropped, Bouchard added for $7.3M (god knows he dosen't need it) and many of his high ranking officers did the same.
See, if i were a top ranking officer of a great company, why would i let everybody else become rich with my company's stock exept for myself?
I will conclude with this personal experience. I started a company a long time ago. Against a loan, the account manager wanted my house in gaurantee (above all the rest)!?!?
This was his explanation, when things will go wrong, and they will, everybody will jump ship. Everydody but you. Because you have so much to lose, you will fight to your last breath. You will either go down with the ship or you will bring it back to port (all-in).
A ceo/cfo with very little investment, can jump ship at any moment. He will work elsewhere. On the other hand, put his childrens education on line...
I know that If i were in control of snc or any other company with a bright futur, i would invest alot of what i own in this company. Why would i make fortunes for other dudes, while i am contended with my salary and/or bonus............?
In other words, put your money where your mouth is! (my opion).