In trying to assess the significance of Andrew Kroger's latest...

In trying to assess the significance of Andrew Kroger's latest CTE purchase, it might be worth checking the timing.

According to an Appendix Y Change of Directors Interest Notice posted on September 2, Kroger outlaid $28,500 on 500,000 shares.

The off-market transaction was booked on Friday August 30, 2019.

The notice does not identify the seller.

However CTE's Annual Report filed on August 22, shows there's only one holder with 500,000 shares. That holder is Talston Pty Ltd.

It would seem that Kroger snapped up Talston's stake for 5.7c a share.

The deal came three days after Cryosite announced on August 27 that it was to receive a $1m cash payment in settlement of a claim for loss and damage.

The claim related to legal services received by Cryosite in connection with the proposed 2017 transaction to sell cord blood assets to Cell Care Australia, CTE's second-ranking shareholder with 19.7%.

Cryosite's August 27 statement said nothing about how the company will treat the $1m payment in its accounts.

Will it be booked above the line? If so CTE is set to announce a substantial net profit for the six months to December 31.

In any case, the payment will strengthen the balance sheet.

It may result in swinging CTE's Net Tangible Asset backing from a negative 3.7c on June 30 to a positive sum of more than 6c on December 31.

While I'd be cautious in forecasting that CTE will be paying an interim dividend, I note that the last time the company paid a dividend, its profit and NTA were as large as they're set to be for the current half.

The company's last dividend payment was half a cent a share.

At the time the share price was ~19c.

It may be that Andrew Kroger is reasoning that if the shares were 19c then, they can be 19c again.

Right now, they're languishing at 4.7c - meaning Kroger is down 17.5% on his Talston deal.

Is Kroger concerned? I doubt it. I think he suspects - as I suspect - that CTE can multi-bag.

We may learn more at the AGM due to be held in November.