24,686,561 is no small number!!!

Just yesterday we were all whining about the low share volumes going through our exchange. Well today we were left with very few words to describe this epic trade. 24,686,561 Delta shares changed hands today. Such deals happen when you least expect them, and when analysed they make a lot of sense too,especially to the exchanging parties. For the seller its cashing in for the buyer its a brand new acquisition. I take my hat off to whoever bought these shares because they have made a sensible decision. Delta has not disappointed in terms of earnings in the last two years and it appears poised for an even better year with what has been happening in our economy.

To the seller, well they made their money and have decided it is time to exit and leave some on the table for the new owner of 24.7m Delta shares. This is what makes the market. Great stuff! It is not every day that a broker convinces a client to part with a cool $17.2m and another that it is time to exit and live to trade another day in one trade!! (unless of course it was a forced trade) Consensus estimates place the Delta share price at between 90 and 100 cents by March 2013. That means the new owner of the shares could be $7,5million richer if the Delta share price goes up to $1. This makes a lot of sense doesn’t it? Buy when everyone is reluctant to buy or keep solid business that have stood the test of time (in Delta’s case, hyperinflation, competition you name it)

I am particularly mesmerised by this trade because some investors seem to be convinced the same way i am that buying into selected ZSE shares now is the right thing to do. If there is anything that i have learnt through this Delta Deal, it is that no share overhang lasts forever when things are going right for a company. Someone clever enough to see value almost always comes and snaps up a bargain when they see one. The Delta deal is important as it highlights to stockbrokers and local fund managers alike that deals are still possible in Zimbabwe if we apply the right attitude and talk to the right people. If you decide that there is value in the share that you are buying or that you have made enough money and want to sell why wait? JUST DO IT as Nike says!

This is really exciting. Serious decisions are starting to happen and surely this deal is not the last one we are going to see on our bourse. It all began in December and now that we are two weeks into the year it seems the buying momentum continuing! In other trades today the stock market was firm. AICO which i also highlighted as a counter to watch remains firm and traded at 20c today, picking up a solid 4c in thin volumes. A number of other counters are also making a significant comeback, CBZ, MEIKLES, ZIMPLOW, INNSCOR and HUNYANI to name a few.