ZIM, should be at a bottom - Pretty good price entry
We are making higher lows and higher highs, and I consider that quite bullish. RSI is getting near oversold levels, and we are around 50 day MA and 100 Day MA.
Fundamentally ZIM is trading under a P/E of 2. They are making big profits on the current container shipment prices. I count this a both a play on inflation and supply chain issues.
They are doing huge dividends, that would only increase the coming quarters of 2022 - all due to making up to 10x what they normally make in these strange market conditions.
I believe we will be back at 55 EOY and I overall have a conservative price target of 80 next year. The highly optimistic price target would be 120+ sometime next year.
Disclaimer I am long on this stock in shares. It will be a strong addition to any portfolio (Good backbone), and will carry its own by having low drawdowns.
BEARCASES:
The rest of the market plunges and pulls ZIM down with it - In which case the value of buying in would only increase.
Worst case scenario, container prices go back to normal in an immediate effect without existing contracts, and the stock will go back to 40-46.
Fundamentally ZIM is trading under a P/E of 2. They are making big profits on the current container shipment prices. I count this a both a play on inflation and supply chain issues.
They are doing huge dividends, that would only increase the coming quarters of 2022 - all due to making up to 10x what they normally make in these strange market conditions.
I believe we will be back at 55 EOY and I overall have a conservative price target of 80 next year. The highly optimistic price target would be 120+ sometime next year.
Disclaimer I am long on this stock in shares. It will be a strong addition to any portfolio (Good backbone), and will carry its own by having low drawdowns.
BEARCASES:
The rest of the market plunges and pulls ZIM down with it - In which case the value of buying in would only increase.
Worst case scenario, container prices go back to normal in an immediate effect without existing contracts, and the stock will go back to 40-46.
Comment:
Aged well, but has fallen a lot from the top - Expecting a run in May. PT: 70+