We noted with interest that Davnet came off it's escrow period recently, in fact the exact date was 29/12/00. Also of note is that founding director Stephen Moignard sold out a large portion of his holding on this date.

Attached is the daily chart of Davnet. Look how the stock bottomed on 3/1/01, 2 trading days after the escrow was lifted.

For those not aware, an escrow period is a restriction the ASX places on founding shareholders, that does not allow them to sell their foundation shares for a specified period, usually 1 or 2 years.

The purpose of this is to not allow a situation upon listing where founding shareholders dump their stock to take short term profits but more importantly also, usually these shareholders hold a large stake in the company and if such an occurrence happened, you could imagine how the stock price would drop dramatically.

Keep a watch over listed stocks as to when the escrow period lapses and as mentioned before always keep track of what directors are doing.