Insiders buying NexJ Systems

Life as a public company hasn’t been a piece of cake for NexJ, but insiders now believe the company’s slide in share price is nearing its end. Toronto-based CRM specialist NexJ Systems (TSX:NXJ), along with Vancouver’s Avigilon (TSX:AVO), were part of a small group of Canadian tech IPOs last year.

But while Avigilon has raced to new highs, NexJ has gone the other way, falling to less than half its $9 IPO price.

Recent filings suggest management believes the current slide is nearing its end. On Wednesday, August 29th NexJ CEO Bill Tatham bought 200,000 shares of the company in the open market at $4.20. He was joined by company CTO David Shepherd, who bought 35,000 shares on the same day at the same price. The buys followed a buy of 508,500 at $4.50 purchase by insider Bill Holland on August 10th.

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Bill Tatham founded NexJ, he told Cantech Letter earlier this year, “the Monday after the non-compete had expired” after selling Janna, the CRM company he founded in 1990 and sold to Siebel Systems (which was itself acquired by Oracle in 2005) ten years later. NexJ’s specific verticals in CRM are finance, insurance and healthcare. The company uses applied analytics and intelligent modeling, believing these tools allow them to analyze greater amounts of data with more context and relevance. Though the company already counts three of the six largest global wealth managers as clients, Tatham believes it has an even greater opportunity in the healthcare vertical, where it plans to dedicate increasing resources. NexJ grew its revenue from just $7.86-million in fiscal 2008 to more than $30-million in 2011.

On August 2nd, NexJ reported its Q2, 2012 revenue. Tatham, said the company’s results, which featured a topline of $7.1 million, down 8% over the same period a year prior, were a “disappointment”.

Shares of NexJ closed Friday up .9% to $4.36.

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