Zim Shipping

Or that investors might want to buy and hold the stock and wait for shipping rates and demand to come back..
Currently Zim shipping almost lost half of its revenue during 2022 peak and was unable to dividends in Q1 2023, resulting in investors left due to significant stock price drop and sharp drop in YOY revenue. It makes sense because if there is no profits there shouldn't be dividends, such that it cannot be hurting the companies bottom line.

However, as of current Zim balance sheet from profits during 2021 to 2022 was substantial. So Zim shipping is trying to tide over the current situation in 2023 of low demand in freight shipping and shipping rates. Zim Shipping was also re-investing some of its profits in the past for R&D and LNG.

Zim management address was that they reassured investors that they have improved their balance sheet after the peak of 2022, such that they have enough cash reserves to tide over uncertainly in the near term.

It is expected that during 2023 and at least for early 2024 shipping rates and demand will remain lower. The current shipping demand has slightly decline in Q1 and Q2 of 2023.

Investor think the stock is a BUY due to the current PE Ratio and stock price is at its lowest ( Assuming that it does not fall any further ). So really it's up for debate whether it's a BUY or HOLD because of mixed informations.
Else it's normal for sideways trading in times of uncertainty or some shorts to happen in the near term if the bulls happen in a larger leg up. It will just confirm and retest the supports and resistance to get a clearer picture.

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My best guess it would trade sideways temporarily due to economic conditions or until there is a clear indication that shipping rates and demand will come back in the future. But as of current it won't be at least till end 2023

Such that currently it may be more likely to re-testing the support levels again if will or will not remain strong and if it is able to break pass the resistance level.

I think if you wanna invest in Zim maybe look at the insider trading or when institutional investors comes in, then it might be a good time to enter. Provided it's not followed by shorts....

Also might want to do some research on shipping rates and demand in the longer term to understand about market conditions. Then maybe you might have a better insight.

As their performance will be largely dependant on the shipping rates and demand, in order to become profitable.

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Also investing in Zim you might want to take into consideration if you are holding out for the long term for dividends even if quarterly earning is not favourable in 2023 such that you could expect some or no dividends. Or if so re-evaluate the decision to continue holding and wait for it to recover or a sell off in the near future.

If you do not intent to remain invested Zim shipping for a longer term, the advice would be to wait for next quarterly earning and see if earning report is favourable. Because the assumption is that if stock price do not rise / maintain and no / little dividends were be paid out. The chance of staying longer isn't so clear in its meaning unless you are anticipating a recover over a longer term like 2024 or you are willing to hold for better times.

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As for dividends, might need to wait for the next quarterly earning to see if they make profits or losses. Such that if they make profits a dividend payout might happen. Else if they make losses, it might be the same as Q1 earning reports, where they won't be paying dividends, which makes sense.

Yes is when shipping is doing well
No is when shipping is not doing well
They pay the dividends according situations

It's quite subjective in the information I could provide...if it's wrong someone could correct the information for me :')