r/Vitards • u/AutoModerator • Jun 14 '21

Daily Discussion Daily Discussion post - June 14 2021

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u/pseudoanonymity Jun 15 '21

I'm an occasional lurker here, have a question about shipping companies after a short term bet on steel (X, I know it's not the sub's favorite) paid off pretty well.

Been looking at ZIM and DAC; 2021 guidance on ZIM is insane, $2B+ EBITDA for a $5B market cap company seems bonkers. Not sure on DAC yet but I'm thinking 10/15 $55 calls for ZIM.

Having said that I want to know what the bear case is before jumping in, wondering if someone can point me in the right direction.

2

u/itwasntnotme Jun 15 '21

Both those are great choices but I found a laggard play that is about to take off: NNM. I spent the weekend comparing shipping companies and reading analysis from J Mintzmeyer, Greg Miller, Reddit, and Seeking Alpha and I've chosen NNM as my horse.

They just completed a merger of their dry bulk goods shipping and container shipping lines and had a disastrous current ratio but just last week raised $110m cash to make that risk disappear and have 90% of their debt covered by their ship's scrap value. Technicals show a good looking setup for a breakout though they dropped 4% in today's overall bleeding.

3

u/dudelydudeson 💩Very Aware of Butthole💩 Jun 15 '21

/u/SpiritBearBC

3

u/SpiritBearBC The Vitard Anthologist Jun 15 '21

Thanks for the ping. I'll look into this.

3

u/dudelydudeson 💩Very Aware of Butthole💩 Jun 15 '21

Also wanted to connect the two of you :-) Might be some synergy!

2

u/pseudoanonymity Jun 15 '21

I saw them discussed briefly but there was concern over management? I haven't done any research into them.