MarketBeat ZIM shippingJust wondering if anyone has done any research on the shipping company ZIM. I have been reading about this firm at Yahoo.com. There seems to be a lot of response in their reader forum about the stock. They’re in a bit of a slide at the present time due to short sellers mostly. I’m puzzled by this regarding a company that reports some $4.5 Billion in cash and is outfitting their fleet with LNG power plants. They are an Israeli shipping firm that is a fairly new publicly traded stock even though they have been in business since 1945. I can’t find any good reason not to jump on this stock while it is near it’s lows.
I have, in the past, bought NVGS, and bailed after a modest loss. Still I’m interested in the shipping business nonetheless.
Marketbeat is touting this: https://www.marketbeat.com/stocks/NYSE/ZIM/
Thanks
…Joe III
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Shipping has gotten pretty frightening now that the container shipping bottlenecks are pretty well cleared and there’s overcapacity in a lot of areas, with shipping rates falling considerably… though they are still well above the rates we saw back in 2019. These are high-debt operations, in general, and their lease obligations pretty much match their cash, so they don’t have a lot of wiggle room.
A lot will depend on the next earnings report, which should be coming next week. If they say positive things about their outlook for freight rates and talk optimistically it might change dramatically, but the current outlook by analysts is for a dramatic reduction in cash flow and earnings in 2023, thanks largely to revenues falling by roughly 50%. That could still be enough cash flow to support the company and please shareholders, now that the value of the company has fallen 75% in a year, but it will probably remain quite volatile.
What is “The #1 Oil and Gas Royalty for 2023” touted by Marc Lichtenfeld?