$ZIM – My Favourite Pick This Month 🚀 via /r/wallstreetbets #stocks #wallstreetbets #investing


$ZIM – My Favourite Pick This Month 🚀

Ticker $ZIM is ready for liftoff. Those who know about ZIMothy know why we have inflation in America. ZIM is likely one of the top performing IPOs of 2021. Why? They hit the scene at the best possible time – when global supply chains have been thrown out of whack, and ports have weeks long backlogs. In this environment, ZIM Maritime Shipping has been printing money, as shown by their earnings growth, margins, and cash flow from operations:

https://preview.redd.it/hhdvfaw42dn81.png?width=553&format=png&auto=webp&s=80d94108ad58ec1879d707c13e6da3526332f3bd

Keeping it short and sweet, current market conditions (supply/demand constraints which results in strong pricing power, favorable regulatory environment over pricing constraints) indicate that ZIM’s revenue and earnings growth will continue at full speed ahead, at least in the short to medium term. To put these financial metrics in perspective, their current market cap is about $9 billion, but they have net cash (cash less total debt) of $1.5 billion, which means the “true” market cap is about $7.5 billion, but also $4.6 billion in profit and $6 billion in operating cash flow in FY21. These are absurd metrics by any industry’s standards, let alone an industrial company. It’s no wonder that the stock is up over 600% since its IPO.

Enter the intrigue for why NOW is the time to buy ZIM – at the March 9th earnings print, management announced a yearly dividend of $17 per share, an amount that would yield a 21.5% simple return as of Friday’s closing price. The record date for this is March 23rd, meaning you want to be “in” by March 22nd. From the volume and price action after earnings, it seems like some investors caught onto this, and have bought in looking for that juicy dividend. This trade provides an insanely wide margin of error, given that the stock would have to go down by about 20% for you to lose money (if you held through the record date). Combine this setup with an over 10% short interest and well… it looks like a once in a blue moon trade to me.

https://preview.redd.it/6pdaix672dn81.png?width=590&format=png&auto=webp&s=509b4949162d2e827794ce41f887f25b2bae5a68

Not financial advice. Be sure to always conduct thorough due diligence on any trade you take

Submitted March 14, 2022 at 03:39PM by Stonkgang_
via reddit https://ift.tt/T5BHbA9