Just have been taking a look at shipping stocks. The yield on ZIM is at an outrageously high levels. I am wondering how much longer this can last -- if demand for shipping goes down with a global recession coupled with the easing of supply chain issues. All which previously have driven shipping rates to very high levels. ZIM Integrated Shipping Services Ltd. (ZIM) -- Forward Yield 23.64% Any thoughts on ZIM and the shipping market?
There have been some great dividend plays here as even the recent $17 dividend was considered a regular dividend, so no option adjustments.
The big March dividend was considered a regular dividend, so no option adjustment https://infomemo.theocc.com/infomemos?number=50158
Recent IPO/overpriced. Given the fact that among their assets there's a lot of vessels, the overpricement could be even higher, cuz evaluating those ships is heck of a job. Rev growth limited, high competition all around, unless some geo political events like war, yet, too many oil nations all around. Will go down for 2 ~ 3 years. As usual. (My guess) Renaissance Technologies as a second major holder. Probabbly offloading.
%% IPO+ Israel based; barchart .com rates it a 40% sell but noted buy, based on last month. SCHW research rates stiil an ''a'' IBD has it below 200dma; i seldom do single stocks anymore.
it might not be the matter of recession as the biggest factor but world reorder. Which lines will be able to be insured by the west as the reorder gets more volatile. Most "non friendly" nations shipping companies assumed to be edged out of insurance along the lines of what happened to Russian oil shipments. Just a matter of time till China moves on Taiwan, then most Chinese and Chinese allied ships will be refused insurance. Plus, Taiwan owns some of the biggest shipping companies like Evergreen and Yang Ming Lines and others. ZIM is treading in between these politics in Israel. USA trying to pretend they are self sufficient in all goods and materials and that logistics can be weaponized. And with US leadership in strong decay ..I could see some very volatile shipping environments in the coming few years. Navy escorts and such through the Suez canal. USA wants to sanction and prevent much of the oil producing countries from delivery and replace this with American oil and gas being shipped around the world. In this light, I would say a high probably that a US cargo somewhere will start drawing retaliation seizures as they tread into eastern waters. These are already happening with sanctioned countries like Iran and Venezuela. Iran just delivered on a series of tanker ships to Venezuela and UAE insured these vessels. The sanctioned countries plan on breaking sanctions in mass and conflict will emerge China and China friendly UAE hold huge port and shipping contracts "all around the world" as per belt and road. So if the US would weaponize logistics and logistics insurance...shipping rates would soar and soar. ZIM holds good relations with DP world in UAE and with China in general. ZIM ships would probably keep moving from east to west regardless of politics. I was looking at Imperial Logistics because the Suez canal might even become a flash point and South Africa might become a regular route again, I started looking at that when the Suez canal was blocked by a supposedly "small mistake" in navigation. So yea..I would say ZIM shipping yield is priced correctly