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‘Founded over twenty years ago, System C has built up expertise in nearly every area of healthcare IT and medical software interfacing.  System C works right across the healthcare sector, and with all types of clinical information systems, including patient-based IT systems.’  (Source- System C Healthcare website)

I was drawn to this stock by a flurry of director activity, where three directors invested [a small amount of money] around GBP 16k-20k each (September 10th, Ian Denley CEO, Markus Bolton Strategy and Sales, and Andrew Coll CFO- source London Stock Exchange).

Whilst not significant in $$ size or % increase in holdings, having the CEO, CFO and Head of Sales and Strategy all buying shares 50% more expensive than last week certainly got me thinking.

At the end of May (then 28p) System C Healthcare (SYS,now 42p) announced they would beat market expectations. They clearly have, given the share price move.

These are the first directors share purchases since System C was listed on AIM at 54p in June 2005.

Have a look at the results, especially the high level of cash generation.

I’d have this as a ‘STRONG signal’ if the directors purchases were more substantial.

Until then System C’s director dealing activity justifies a  ‘MEDIUM strength signal’

I’ve looked at the Hargreaves Lansdown (HL. , 190p) share price performance since the results on August 27th. The shares moved from 161p to a high of 209p, and are now off the top at 190p.

So a more than 25% uplift after a great set of results (to June 2008). Of note was an increase in assets under management, and an increase in the proportion of income that is recurring, up about 4% points to 72%.

I then looked at the slides from the analyst presentation, and recount here from the ‘Conclusion’ slide:

‘Resilient business’

‘H-L is well positioned in the market’

‘Volatility will impact profit growth’

‘….but long term prospects remain very positive’. 

I also notice a comment on FT’s Alphaville quoting a Citigroup report that shows a marked slowdown in global stockmarket activity n August, down 37% in value vs last year.

And I then understand why on September 9th the CFO of Hargreaves Lansdown Martin Mulligan has taken some money off the table by selling 200,000 shares at 193p, taking his holding to 2.1m shares. His colleague Tracy Taylor, Group Accounting Director and Co Secretary, has also sold, 65,000 shares at 193p taking her holding to 932,000 shares.

Of note is Mulligans past trading activity. He sold 1.2m shares in September 2007 at between 208p-210p. HL shares subsequently fell to 135p in January.

So maybe ‘volatility will impact profit growth’ is the line to focus on for the next six months.

Signal strength: MEDIUM

Link to Hargreaves Lansdown Investor Relations site.

It was announced yesterday that John Juric, a PDMR [senior manager] of Fiberweb (FWEB, 52p), had on September 8th invested GBP 52,000 by buying 100,000 shares at between 52p and 52.2p.

This led me to review recent director buying at Fiberweb. Directors of the group have trebled their positions in Fiberweb by buying over 1.2 million shares in the last four months, at prices between 43p and 45.6p.

Fiberweb was spun off from BBA Group in late 2006, initially trading at 167p before moving to a high of 226p in February 2007. It wasn’t until the share price had retreated to 56p in October 2007 that a majority of directors started to buy.

I have suggested in past comments that these ‘signals’ from directors buying remind me of Enodis and EMAP, where, following a collapse in takeover talks, directors aggressively bought shares in their own company.

Signal strength for director dealing activity in Fiberweb remains ‘STRONG’

For my previous comments on Fiberweb ‘Directors buying, cost cutting, possible takeover target’, and ‘Directors pile in after takeover talks collapse’ click link here.

To access a Reuters profile of Fiberweb see here.

Enodis commentary here.

EMAP commentary here.

Disclosure: I have a position in Fiberweb.

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September 2008