During the launch of Financial Insight Zambia, we made the bold statement that we would be investing a sum of 2000 pound sterling into the Lusaka Stock Exchange. We also indicated that we have a benefactor who expressed confidence in our project and continues to breathe life into the humble work my team and I are doing.
The following is an extract of an email we shared with our benefactor from our broker (Stock Brokers Zambia) last week regarding the portfolio we have created for our investors.
“Please see enclosed herein your latest share position. Fininsight invested K23,000.00, of which the total commission charge of 1.50% came to K339.89, leaving K22,659.00 to be invested as per the below. The current value of your portfolio as at 2nd August 2017, stands at K22,439.00, demonstrating a loss of value of K220.00 as a consequence of the price drop in Zambeef from your purchase price of K3.00 to K2.61.
For the half year ended 30th June 2017, we are still yet to learn of any interim dividend declarations from Company C and Company D, whose financial years end on 31st December. Company A will close its financial year on 30th September 2017, and the AGM should take place before the year closes.
Please also note that Company B is currently undergoing a mandatory offer, should you wish to participate. The whole purpose of a mandatory offer is for the new majority shareholder with a controlling interest in the company to give minority shareholders the opportunity to sell-out, should they wish to for reasons that may boarder on, for example, non-interest to stay in the company given new management, a pressing need for liquidity or etc. A mandatory offer is triggered once a shareholder acquires 35% or more in company”
Although our portfolio has lost K220 to date, we have just been informed that a dividend (north of K1000) that has been declared on our portfolio. This is evidence that wealth continues to be created in Zambia from LuSE. Also this has been the argument that has preached by the founder of this website. This will be good news for our benefactor and should instill confidence in the work we are doing. Furthermore, we understand that dividends influence the belief system of investors.