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Mike Lawrie, CEO of Misys plc (MSY, 118p), and Chairman of Allscripts after Misys completed a purchase of the majority of the shares in the company, has bought 70,000 shares in Allscripts at $5.0921 (27th October- source London Stock Exchange– type MSY into Code box).

Lawrie already has a $1m shareholding in Misys (excluding his share options and performance plan shares). Does he now think Allscripts is the cheap (er) way to invest in the group?

Misys have outperformed the market by 25% since Lawrie last bought shares in March 2008. In ‘mmmmmm Misys – ‘Turnaround Strategy’ working? ‘ followthedirectors drew attention to the Misys directors share purchases: 

Misys’(MSY. 137p) CEO, CFO and Chairman have increased their positions by between 14%, 50% and 60% respectively, buying shares at between 135p and 136p last Friday.
So why look at Misys?
1. Significant increase in positions (50-60%)
2. Three senior bods buying £70-£135k of shares each
3. Misys is one year into ‘Turnaround Strategy’, which should go some way to insulating them from the expected downturn in demand from banking customers.
So one for the watchlist, or for the long term investors.

Lawrie last paid 136p for Misys in March 2008. At the time MDRX were trading at $9 or 450p.

Misys are now trading at 118p, a fall of 14%, and MDRX at $5.50 or 342p, 24% lower (in the weaker pound).

Is that a huge variance? No. But I note, looking at Bloomberg, that the short position in MDRX amounts to 6.2m shares. Maybe that will all unwind when the acquisition of shares by Misys is settled.

Either way, I suspect that MDRX offers better growth (Medical underpenetrated by technology, higher recurring revenues, greater certainty of revenues than Banks), more certain cost savings (from merger of Misys and Allscripts Healthcare businesses), and ‘cheaper’ shares (as US holders sell out of what is now essentially a UK controlled company).

So if you are looking to buy Misys, investigate MDRX as a possible alternative. Lawrie has a good track record in his share purchases.

For all Misys comments on this site click here.

For the latest presentation (October 23) by the management of Misys Allscripts go to the Misys website.

View on Misys: Positive

Strength of signal indicated by directors share dealings: Remains STRONG

Disclosure: I have a position in Misys plc

WSJ November 5th ‘Allscripts executives snap up shares’

Five Executive directors at GKN plc (GKN, 126p) have bought 386,000 shares between them this week, increasing their shareholdings in the group by 75% to around 896,000 (Source: London Stock Exchange).

Those directors are:

CFO William Seeger, CEO Sir Kevin Smith, CEO of Powder Metallurgy Andrew Smith, CEO of Aerospace Marcus Bryson, and CEO of Automotive Nigel Stein. It’s particularly encouraging to see Stein investing here, in view of the recent profit warnings from the car makers globally.

Stein bought 84,000 shares at 100.5p on October 28th, taking his holding to 209,000 shares.

Andrew Smith and Marcus Bryson were sellers near 330p in August 2007, so buying shares at 109p must feel good. Unfortunately CEO Sir Kevin Smith was not quite so savvy. He paid 360p in March 2007.

So GKN join the merry band of UK Engineering companies exhibiting director buying activity: Weir Group, Bodycote, John Wood, Senior and IMI.

See ’25 Directors buy shares in UK Engineering Companies’ (October 28th

View on GKN: Positive- Five directors buying shares

Signal Strength: STRONG- Five directors buying, investing GBP 400k between them, increasing holding by 75%

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October 2008