ZIM Integrated Shipping Is A Good Buy Now

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3.38K Followers

Summary

  • Container shipping company ZIM is generating bumper profits.
  • The stock has pulled back as concerns grow about a recession and a decrease in shipping rates.
  • Although the company’s profits are bound to fall, the stock offers 40% upside even if profits drop by two-thirds.

Container Ship Beneath Bridge

shaunl/E+ via Getty Images

Introduction

Three years ago, I published an article on shipping stock Danaos (DAC), calling it the cheapest stock in the market. It was trading at less than 2x EPS after it had been forced to

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This article was written by

3.38K Followers
Run a long/short partnership. 25 years of experience in business and finance. CFA charter holder. Analysis is fundamental, focused on the numbers and takes a skeptical view of company declared pro-forma figures. Occasional speaker on business/finance/economic issues. Note for commenters who feel bold hiding behind a veil of anonymity: The "Analyst" designation is issued by SA to anyone who contributes an article. If you have a problem with it, take it up with them. Don't necessarily have a position in stocks we comment on. If you don't agree, best to write your own comment rather than replying to ours. Any ad hominem attacks will be met with an appropriate response.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ZIM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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