Occasionally, I would look at insider or share buybacks to test my luck in spotting hidden gems. In fact, this is also one of the more commonly used strategies by investors. Why is that so?
As the legendary Fund Manager Peter Lynch once said:
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
In short, a company’s management would only purchase the stock or initiate share buybacks when they perceive that the stock is undervalued. Hence, it makes sense for investors (like you and me) to do some further research to see if the stock is really a bargain per se.
With these in mind, let’s zoom into 3 interesting companies I’ve cherry picked which have recently experienced insiders buying back shares.
1. Katrina Group (SGX:1A0)
Katrina Group Ltd operates restaurants and cafes. Some