disposal of shares

Hi, Im looking for advice in relation to shares as im not that familiar with them.. I recently invested in a company and they released a statement on friday stating that the previous director of the company has disposed over one million shares.. Should I bail out and take back half of what i invested or hang on? The prospects of the company are meant to be very good..Hope someone can help..

Kevin....

Shares are like the lottery ... you take a chance .... only you can decide whether or not to stick or bail out.

You can't mention the company here as discussion of individual shares isn't allowed.

Directors of public companies only have certain windows during the year in which they can or will sell shares to ensure compliance with insider trading regulations (esp if the company is public in the US). It's worth checking if it's just after an earnings announcement or if this is merely a pattern of selling a certain number of shares at certain intervals. Whether a million shares is a large number or not depends on the issued share capital of the company involved.

Review the shares & company info in some of the financial papers ie Ft.com,I.T., The Guardian, yahoo offer share information, as does fool.com. But as other posters have said, it must be your call in the end.

I think it all depends on how much the 1 million shares are worth and how many shares the director owns. If the shares are trading at €0.2 and the director owns 20 milion shares then this would not be a big deal. As already mentioned, insider trading regulations are very restrictive on executives and when and how they sell their shares.