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The Signal, CEO Buys Stock; Aastrom Biosciences (NASDAQ: ASTMD)


We are all looking for any signal that will propel a stock and ONE indicator is the CEO investing his own money  in ASTMD.  CEO’s “direct” share ownership should be a factor of significance, but should not be confused with option or grant holdings.

Timothy Mayleben, the new CEO filed a Form 4, this week with the SEC.  Click: http://shareholder.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingRTF1?sessionid=Qo_lHI3CLLNX2-D&ID=7112064&PageBreakStyleID=2

In this market, CEO’s that “think and act” like owners will be 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.

Executive staff members can talk all they want about confidence in their future prospects and platforms, but the best vote of leadership is putting their percentage of their net worth on the line just like their investors

Measureable stakes could validate the success of future prospects and sustainability.