BATM Advanced Technologies chief executive Dr Zvi Marom has bought 375,000 shares at 41.5p each after the telecoms technology supplier reported disappointing 2009 figures. The share price has fallen by one-fifth since the results announcement.
Dr Marom, who founded BATM in 1992, invested nearly £156,000 in the shares, which took his stake to 22.8%. Last May, Dr Marom invested £62,750 in shares at 31.375p each.
Dr Marom bought the shares in time to take advantage of the near-doubled dividend. The dividend has increased from 0.69p a share to 1.35p a share - although 0.55p a share is classed as a special dividend. Dr Marom will receive £1.23m in dividends.
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The special dividend is designed to return some of the company's cash to shareholders. There is $28.1m in the bank and investments of $38.7m. This is offset by debt of $6.14m.
Total revenues were flat at $135m in 2009 and pre-tax profit fell from $23.7m to $18.4m. The telecoms division had a weaker fourth quarter and the medical side fell into loss during the year even though the growth in its revenues from $18m to $30m was faster than expected.
After the 2009 results were announced Dr Paul Cornelius of FinnCap said: "We clearly expect share price weakness over the near-term and are reviewing our FY10 estimates which currently stand at revenues of $148m and adjusted EBIT of $30.5m".
Dr Cornelius expects the medical division to provide the most significant growth over the medium-term but he points out that this could put gross margins under pressure this year.
Top Director Buys
BATM Advanced (BVC) Director name: Dr Zvi MaromAmount purchased: 375,000 @ 41.50p Value: £155,625
Witan Inv Trust (WTAN) Director name: Mr Andrew L C BellAmount purchased: 20,000 @ 428.30p Value: £85,660
Education Development International (EDD) Director name: Mr Nigel M SnookAmount purchased: 12,000 @ 137.00p Value: £16,440
Oxford Advanced Surfaces Group (OXA) Director name: Mr Michael Anthony BrethertonAmount purchased: 200,000 @ 5.00p Value: £10,000
Top Director Sells
Cadbury (CBRY) Director name: Mr H Todd StitzerAmount sold: 1,363,520 @ 841.00p Value: £11,467,203
