If the sight of a senior executive buying shares in his own company is an indication of anticipated positive financial news, then keep an eye on the share price of Vodafone Group plc (NYSE: VOD). Vittorio Coloa, CEO of Vodafone Omnitel, and chief executive, southern Europe region, of the parent company, splashed out just more than £740,000 (US$1,183,000) of his own money on Thursday for 643,848 Vodafone shares at 115 pence per share. The shares are currently trading, midway through the London trading day, at 117.3 pence.
Unstrung's investment team, Dave Mock and Tom Taulli, recently wrote about the issue of what they call "insider buying," describing it as "for the most part, a very bullish sign" (see Aether Systems: Down but Not Out). However, they did note that, although "insider buying offers a guide, [it offers] no guarantees."
We wish we had $1.2 million to spend so soon after the holiday season, though it wouldn't be spent on telecom stock, of course. As Unstrung's wise old Granny used to say, "You might as well put it all on a horse in the next race at Kempton Park." And that's probably what we'd end up doing, too!
— Ray Le Maistre, European Editor, Unstrung