BUY: $ZIM $DAC
I posted on here a couple months ago sharing some top picks across the containership industry. Rates for containerships (the ships which carry thousands of the 20-40’ boxes you see on railroads and trucks) are still going ballistic and have already exceeded my most bullish expectations. More importantly, these are not just temporary spot rates, but we are seeing a plethora of charters signed for 2-3+ years at these elevated levels. The world's containership liners clearly believe the strong rates are here to stay through at least 2023-2024.
Link to the latest containership rates: https://harpex.harperpetersen.com/harpexVP.do
I’m currently long about every name possible in the sector and although I've taken some profits in certain names to be responsible and lock in profits, I've also added a lot to a couple key beneficiaries including Navios Partners (NMM) and Zim Integrated (ZIM).
Even after the huge surge in the stock price, the enterprise value to EBITDA valuation metrics are very attractive since 2021-2022 EBITDA is surging and net debt levels will also be much lower by the end of 2021.
As I noted above, containerships are not like tankers and dry bulk vessels which normally just get 60-80 day voyages. These ships are landing 2-3, or even 4+ year fixtures. Much of 2021 is already locked in for these companies and we're now looking at solidifying coverage into 2022-2023+
I’ve covered the shipping sector extensively on Seeking Alpha for nearly 10 years and am also on Twitter (@mintzmyer). I enjoyed the conversation on here a couple months ago and figured I'd add another update. I also have a new webinar video available on YouTube, but I don't think I'm allowed to link that?
Nick First (@allthingsventured on Twitter) has recently written another new article on top pick Navios Partners with his own financial projections- highly recommend:
Article on Navios Maritime Partners
I believe we’re probably 4th or 5th inning here. For my disclosure, I’m *still* very long nearly all the key names in the space- $ATCO $CPLP $DAC $MPCC (Oslo) $NMM and $ZIM. Keep in mind that nothing here constitutes investment advice in any form or fashion! I'm just talking about stocks I personally like. Positions may change in the future and I have no obligation to provide future updates.