In late October last year Bioquell (BQE, 177.5p) shares jumped by 25% to a high of 252p on news that the UKs department of Health Rapid Review Panel had classified Bioquells superbug eradication technology as Category 1 [whatever that means].

Eight months later, at below 150p, directors started buying:

30th June 2008, the last day of the financial half year- CEO Nick Adams buys 20,000 shares at 149p, taking his holding to 720,000 shares. On the same day Non exec Simon Constantine buys 26,000 shares at 150p, taking his holding to 456,000 shares.

5th September, after some decent results were announced on 27th August, the COO Mark Bodeker buys 20,000 shares at 175p, taking his holding to 34,000 shares. He is accompanied by Non exec Nigel Keen, who buys 20,000 shares at 180p, taking his holding to 35,000 shares.

Both Bodeker and Adams have substantial share options, totalling 706,000 and 673,000 shares repectively, exercisable in various tranches between now and 2011. They were also paid in cash around GBP 200k each last year.

So in view of this a GBP 30-40k is not a significant investment.

However Bodeker and Keen have increased their shareholdings by more than 100%, and four directors have bought shares over the last two months, which is unusual if you compare this with the limited activity by directors over the last two years.

I would classify this recent director activity as having a ‘MEDIUM strength’ signal for investors. Having said this I would not be surprised to see future positive news of more hospital rollouts for this successful technology in the area of cleansing wards of C-difficile.