Directors’ Dealings: Mushayavanhu ups stake in FBCH

FBC Holdings Limited executive directors, John Mushayavanhu (CEO), and his deputy Trynos Kufazvineyi are buying the company’s shares again.

The two senior directors bought just above 500 000 shares each on the 9th of September 2020 to add to their already growing shareholding in the financial services group.

This year alone Kufazvineyi has now bought more than 8 million FBC Holdings shares to take his total indirect ownership to 22 756 547.

The shares are owned through Dinkrain Investments (Private) Limited where Kufazvineyi has an indirect beneficial interest.

On his part, Mushayavanhu has this year bought more than 2,3 million shares to take his total interest to 42 836 200.

Mushayavanhu has an indirect beneficial interest in Tirent Investments (Private) Limited which bought the shares.

Market watchers say when company executives buy shares of a company in which they are the key decision-makers, is a good signal of things to come given management should have a better understanding of the day to day operations.

Insiders can often act well in advance of good news so the phrase “stay the course” is relevant.

The more directors transacting (and obviously the more material the stake) the better the signal, observers say.

A famous quote by Peter Lynch is often used:

“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

Meanwhile, FBC is one of ZSE’s top performers. Since the beginning of the year, it has gained +1 586 percent.

By market capitalisation, FBC Holdings is now the seventh most valuable company on the ZSE.

In its latest set of results for the six months to June 2020, FBC Holdings registered

a “commendable” profit before tax of $2.1 billion from a loss position of $380.1 million for the same period last year.

The Group performance was mainly driven by the non-funded income derived from its effective hedging strategy, according to Management.

“The hedging strategy resulted in noteworthy exchange gains and fair value gains being recorded as the local currency depreciated against major currencies.”ebusinessweekly