ZIM Integrated Shipping Services (#ZIM) Weekly Special Report based on 1 Lot Calculation:
GLOBAL SHIPPING MARKET:
- The global shipping industry is a vital component of the international trade network, facilitating the movement of goods across borders and connecting markets worldwide. It encompasses various modes of transportation, including container ships, bulk carriers, tankers, and specialized vessels, catering to diverse cargo types and requirements.
- As of September 2021, the estimated market value of the global shipping industry was over $500 billion. The shipping industry accounts for over 80% of the world's trade by volume, making it a crucial driver of economic growth and globalization. In terms of cargo volume, the global shipping industry transported approximately 11 billion tons of goods in 2020.
ZIM (#ZIM)
- THE COMPANY: ZIM is a globally renowned shipping company that has been a key player in the maritime industry since its establishment in 1945. Known for its commitment to innovation and sustainability, ZIM provides comprehensive shipping solutions, including container shipping, logistics, and terminal operations, facilitating the efficient and reliable transportation of goods across the world. With a focus on customer satisfaction and cutting-edge technology, ZIM continues to be a trusted partner for businesses navigating the complexities of international trade.
NEWS AND EVENTS:
- ESCALATING TENSIONS IN RED SEA: As attacks by Houthi Rebels on ships in the Red Sea continue and become more frequent, shipping companies including ZIM, MSC, Maersk and CMA CGM and oil companies such as BP are diverting their ships around Africa (Cape of Good Hope) which:
- Increases the journey distance by 40%
- Increases voyage duration by 12 days.
- This has pushed rates up 10.1% over the past two weeks (Source: World Container Index) which can increase tanker earnings which had already been expected to be strong into 2025.
- ZIM’S LARGE CASH STOCKPILES: Zim’s quarterly cash burn rate is approximately $300 million, suggesting that its existing cash reserves could sustain operations for about nine quarters, or roughly 2.3 years could there are any market difficulties.
STOCK PRICE ACTION AND FORECASTS:
- PRICE ACTION: Zim stock is currently trading at ~89% below its all-time high of $88.62 (March 16th 2022). The stock is around 40% up since the start of December 2023. The stock has an upside potential of 833% from its all-time high. However, the price could go down.
- ANALYST FORECASTS: JP Morgan: $14, Jeffries: $13
ZIM Integrated Shipping Services (#ZIM) December 20, 2023
Current Price: 9.50
|
ZIM |
Weekly |
|
Trend direction |
|
|
16.00 |
|
|
14.50 |
|
|
13.00 |
|
|
7.00 |
|
|
6.70 |
|
|
6.40 |
Example of calculation based on weekly trend direction for 1 Lot1
|
ZIM |
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|
|
||||||
|
Profit or loss in $ |
32,500.00 |
25,000.00 |
17,500.00 |
-12,500.00 |
-14,000.00 |
-15,500.00 |
|
Profit or loss in €² |
29,708.45 |
22,852.65 |
15,996.86 |
-11,426.33 |
-12,797.48 |
-14,168.64 |
|
Profit or loss in £² |
25,690.18 |
19,761.67 |
13,833.17 |
-9,880.84 |
-11,066.54 |
-12,252.24 |
|
Profit or loss in C$² |
43,372.88 |
33,363.75 |
23,354.63 |
-16,681.88 |
-18,683.70 |
-20,685.53 |
- 1.00 lot is equivalent of 5000 units
- Calculations for exchange rate used as of 11:10 (GMT) 20/12/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail