ZIM Integrated: A Value Trap With An 80% Dividend Yield?

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The Asian Investor
17.14K Followers

Summary

  • ZIM Integrated’s shares fell to a new 1-year low on Thursday.
  • Share price weakness results from growing macroeconomic concerns and a steep drop-off in cargo shipping rates.
  • A global economic slowdown could result in a significant decrease in shipping rates and profits for ZIM Integrated going forward.

Container Ship Beneath Bridge

shaunl

Shares of ZIM Integrated Shipping Services (NYSE:ZIM) have dropped to a new 1-year low yesterday due to growing concerns of a global economic downturn that would likely lead to a significantly lower profit baseline for cargo shipping companies. Although

Chart
Data by YCharts

IMF

IMF

Drewry World Container Index

Drewry World Container Index

Drewry World Container Index

Drewry World Container Index

Chart
Data by YCharts

This article was written by

The Asian Investor profile picture
17.14K Followers
I look for high-risk, high-reward situations. Five largest portfolio holdings: AMD, Micron, Alibaba, Ethereum, PayPal. Early buyer of cryptocurrencies. I live in Thailand :)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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