Even if he thinks the company is going to end up doing better in the long term, that doesn't necessarily mean he should purchase the stock. He could think they are going to be making moves with only minor announcements and the stock will fall despite the company actually doing something that will fix their downward trajectory. Stock purchases are more closely tied to what the public perception of their trajectory is, or even higher order (eg what will individuals on average predict what the public will think the company worth is).