ZIM - ZIM: I Was Wrong But Still Bullish
2024-01-27 09:00:00 ET
Summary
- ZIM's shares have depreciated by ~20% since the publication of my latest article on the company, but there are reasons to believe the worst for the business is behind it.
- The Red Sea crisis has resulted in a spike in freight prices, creating an opportunity for ZIM to generate decent returns in Q1 and beyond.
- ZIM's shares are undervalued and have room for growth, with the potential for the company to become net cash positive and announce dividends.
I have been pretty bullish on ZIM (ZIM) in the past in large due to believing that by achieving a soft landing the global trading activity will improve and lead to higher freight prices to which the company's business is greatly exposed. While it seems that a soft landing is on the cards, the freight prices failed to gain traction in recent months, which resulted in the depreciation of ZIM's shares. Since the publication of my latest bullish article on the company in March, ZIM's total return was -20% and we could safely say that I was wrong in my thinking last year....
ZIM: I Was Wrong, But Still Bullish