$ZIM Integrated Shipping (ZIM.US)$ Started bottom fishing XOM at 40, the second entry was at 35. Total of 400 shares, right? 36 was actually the point of the second buy, but I set a stop loss. XOM is at 120 today.
Cyclical stocks, institutions will push prices to unbelievable lows and highs.
Warning ⚠️, the economy is still in recession, the rebound will not be until at least the end of the year, so institutions will continue to cut losses. Just buy slowly.
Shipping is considered a bad business on Wall Street because a ship is used for 15 to 20 years, spanning 2 economic cycles. In case it sinks, collides, gets robbed by pirates, results in liability incidents and the containers auctioned off do not fetch much, joint general average actually has limited effect. ESG demands have led to old ships being forced to retire and dismantle early. So... E-commerce giant is crazy about long-term leased ships. Nowadays, airlines mainly lease aircraft, selling ownership to financial institutions. Responsibility with airplanes involves compensations for accidents, whereas maritime laws often carry ancestral exemptions... or it could be the actual ship owner's responsibility, where leasing ships becomes a high operating cost, but mainly secure.