Spoony Love said:
Is the thought on shipping companies that basically they have run out of luck or will soon?
Several have posted revenue increases from the prior year due to increased freight, but with it came increased expenses as well. I'm thinking it's a function of looking ahead to a slow down in manufacturing and not shipping as much product. Curious to hear what everyone's thoughts are.
I've done a little research on ZIM and SB. ZIM seems poised to bring on healthy revenue and they reaffirmed their FY22 guidance last earnings report of increased profit from FY21. They just closed a deal with Shell to store LNG and the stock. It's at a 52 week low. Sounds like an opportunity to get in near a bottom soon.
Wouldnt touch ZIM unless it scrapes the bottom of the bourbon barrel. They dont hold many assets, are skewed towards spot prices, and possess very little in way of lengthy charter agreements. They have a ton of cash on hand, and the fat divies will still be in store through 2023. I wanted to see some buybacks so it could hit fair value, but theyre reticient to do so since they jusy IPO'd not too long ago. Sold off my position last week.
If you want an undervalued shipping play that has a ton of upside buy GSL. This is the company that companies such as ZIM rent their ships from. 8% divy as of writing, clearing out their debt, and they just announced a huge multi year charter agreement with Hapag-Lloyd. These charter agreements are about half of their current market cap. Sail on pirate.