Buy Eli Lilly

The weather this morning in Joburg is the best it has been in months, so I'll keep my Musings short. There is an old market saying, "insiders sell for many reasons, but they only buy for one".

Last week, Eli Lilly released an impressive set of numbers, but disappointing drug trial data led to a tumble in the share price. The reaction from company insiders was to load up on shares worth millions, including the CEO, David Ricks (pictured below), who bought $1 million worth for himself.

When insiders are buying, it is usually worth paying attention. To us, this also looks like a good buying opportunity.