ZIM - ZIM: Sudden Ceasefire Risk
2024-02-02 14:30:12 ET
Summary
- ZIM Integrated Shipping Services Ltd. slumped over 10% just on signs of a peace deal in the Middle East.
- Ceasefire risks could bring an end to Yemen Houthi attacks on ships, leading to a return to normal shipping rates.
- The company could report strong Q1 '24 results, but the stock will fall back to the lows when shipping rates collapse from an end to the conflict in the Red Sea.
Signs of a peace deal in the Middle East led to ZIM Integrated Shipping Services Ltd. ( ZIM ) slumping over 10% back to $13. The container shipping stock soared over the last month due to the Yemen Houthi attacks on ships in the Red Sea, which led to soaring shipping rates. My investment thesis remains ultra Bearish on ZIM, with the stock likely to collapse once a peace deal is reached, regardless of whether ZIM reports short-term profits....
ZIM: Sudden Ceasefire Risk