My ZIM Q2 Earnings Short Plan

15 août 2023

That is my first swing short position.

I was going to share this plan yesterday but didn't have the time to post. As of Monday August 14th, the plan was to see if we have an uptrend or a downtrend before the earnings on August 16th (tomorrow).

The plan was to see where we gonna go today. If we have stalled, I would only enter after earnings.

But today, we broke my support area pretty sharply around the ~$13.50 price. I entered a short position at $13.39.

This year isn't going well for ZIM, and based on Zacks Consensus Estimate and other analysts, the current catalyst is missed earnings with a potential quarterly loss of $0.88 per share, which will represent a year-over-year change of -108%.

My plan is to exit my short position around the next support level of ~$12.30, which would be a ~7.30% for the trade.

As usual, this is my no mean recommendation. I decided to start using TradingView more as my personal-public journal to hold myself accountable for a trading plan and share ideas and get feedback. Happy to get your thoughts on the above, of course. Thanks!

16 août 2023

Transaction en cours

As shared in the original post, ZIM reported Q2 2023 financial results today during pre-market hours:
- Q2 2023 Net Loss of 213M compared to net income of $1,336M during Q2 2022.
- Adjusted EBITDA for Q2 2023 was 275M, a year-over-year decrease of 87%.
- Operating loss (EBIT) for Q2 2023 was 168M, compared to operating income of $1,764M in Q2 2022.
- Revenues during Q2 2023 were $1,310M, a year-over-year decrease of 62%.
- Carried volume in Q2 2023 was 860 thousand TEUs, a slight year-over-year increase.
- The average freight rate per TEU in the second quarter was $1,193, a year-over-year decrease of 67%.

Overall not a good report, although the company expects to generate adjusted EBITDA of $1.2 billion to $1.6 billion and an adjusted EBIT loss of $500 to $100 million as a full-year 2023 guidance.

ZIM's CEO shared: "Although our second quarter results reflected continued near-term challenges in the container shipping market, our total cash position of $3.2 billion at quarter's end remains strong. We believe our ample liquidity and solid balance sheet will enable ZIM to operate from a position of strength and maintain a long-term view even during a prolonged period of market weakness. As we overhaul our fleet profile and advance ESG objectives for both ZIM and customers, we remain confident in the Company's strategic positioning to drive profitable growth over the long term."

Pre-market doesn't look good for ZIM, which gets me closer to my target exit area of $12.30.

16 août 2023

Trade fermée manuellement

I closed my short position in my target area. Half the position at $12.27 (8.70% upside) and another half at $12.18 (9.45% upside). This was an interesting first short position to the resume, which had its obvious major risk of entering the day before earnings.