The Only Metric I Need, CEO’S Open Market Purchases, Aastrom Biosciences (ASTM)
We are all looking for any signal that will propel a stock and one major indicator is the CEO investing his own money. Timothy Mayleben, CEO of ASTM filed another Form 4, this week with the SEC wiich is his 2nd open market purchase since becoming CEO in 12/09.
CEO’s “open market purchases” and increasing direct share ownership IS a factor of significance and should not be confused with option or grant holdings. CEO, President & Director of ASTM, Timothy M Mayleben bought 17,600 shares of ASTM on 05/21/2010 at an average price of $1.42 a share.
CEO’s can talk all they want about confidence in their company’s future prospects and platforms, but the best vote of leadership is putting a continual percentage of their net worth on the line just like their investors!
In this market, CEO’s that “think and act” like owners are more aligned with shareholders. Also, if management teams have significant downside risk; their investment could ensure G&A and burn-rate discipline. Investors want more confidence in believing CEO’s commitment that shares the investment upside and downside.
Measureable stakes could validate the success of future prospects and sustainability.
