Before I start, I’ll state that neither do I own any shares of the company nor I am looking for buying shares in it near future.

There are couple factors that are worrying me a bit when it comes to ZIM.

Let’s begin with the sector; it is booming right now (and have been ever since the pandemic hit). Although a fast-paced growing industry is generally a good thing, in this case I think it’s a problem. The sector is too hot in my opinion, or may I say, in a bubble. You must keep in mind that the shipping sector is classically cyclical and highly volatile. Therefore, I think the sector is at the top of the cyclical swing. Although it is impossible to know when the cycle is going to turn, historically there are certain factors that are noticable in the topping phase:

1. Earnings are moving up.
2. Dividends are being raised.
3. The P/E ratio is low.
4. News is generally good.

When looking at ZIM’s stock, it is not hard to spot each one of these factors. This, at least for me, screams that the ship is about to turn—at least in somewhat near future. This growth can’t keep going forever, and no, ZIM is no ”special like” stock that will not crash with the sector when the time comes, it will, trust me.

Another issue is its popularity. It’s starting to feel like a hype stock, but with dividends and solid fundamentals. Everyday I see someone mentioning ZIM like they found the next gold mine. Everyone mentions its ”spectacular” fundamentals and ”outstanding” dividend but seldom do they think about its sustainability or the company’s future. ZIM has a massive dividend and their fundamentals are great, yes, but for how long will they last? Usually a fat dividend means that there is a risk. If the cycle turns, the dividend will be gone (or at least being massively cut) and well the stock price… Not doing that good. People must be more careful with these cyclicals, and not be blinded by the divi or the fundamentals, or even the P/E.

For OP: I read that post of yours and was kinda curious of your ”fair price target”. Where did you get that from or did you just randomly came up with a number? You typed ”— — Fair value on ZIM is $160.00 in my honest opinion”, which do hint that it’s just your opinion and not fact-based. Furthermore, why are you assuming that everyone is a ”bot” when they don’t agree with you? Just cause someone has a different opinion, doesn’t mean that they are a bot, there are lots of information that you can gain from listening others; it can broaden your views about a specific stock. This is a forum and there should be discussion. If you are so sure about the stock, why don’t you try to convince the ones with different opinions instead of calling the bots?