Happy July 4th!!
At the start of the year, I made a Carpe Diem! post with a bunch of ideas
At the time, I had no idea how either the market, or how the picks would pan out.
Since the market has tumbled badly, I have decided to try a mid-year edition of the Carpe Diem! concept.
There was a shipping idea (Flex LNG (FLNG)) last time around. FLNG is still holding up quite well. Other shipping ideas have not held up quite as well.
Container shipper Zim Integrated (ZIM)
Not as large as container shipping giants MSC or Maersk. But has a less competitive relationship with the two shipping giants as it is part of the 2M alliance (which include MSC and Maersk). Zim holds the 10th spot in TEU (twenty-foot equivalent units) capacity, but is different from the rest of the Top10.
Different how? Different, in that ZIM leases the majority of its vessels from small or large third party entities. Nice dividend payout while you wait - 20% of net income in Q1, Q2 and Q3, and Q4 includes a “top-up” element so the dividend is 30-50% of net income. Just be aware of Israeli tax withholding of 25%.
Bbb, or Brazilian beer bet, Ambev (ABEV)
Repeat idea from the start of the year. Is the US economy going into a recession? Maybe. Is the Brazilian economy going into a recession? Possibly. Will people stop drinking beer? Um!, … probably not drastically. Investing thesis foe ABEV: Buy below $2.75/sh and sell between $3.15 - $3.25/sh, (rinse-and-repeat)
C is for Canada. Buy a Canadian bank … like The Bank of Nova Scotia (BNS)
Unlike their US counterparts, Canadian banks have less restrictive ratios and seem to be better run businesses. BNS has dropped about $13/sh in 2022. Recover half that drop, plus one or two dividend payouts, and that’s somewhere in the neighborhood of a 13-15% return.
Silicon and specialty metals producer. Company struggled right after Covid pandemic. But got bailed out with some assistance from govts in Spain and France. GSM mgmt seem to be working to improve the
company, including workarounds for Ukraine inputs.
Keep an eye on the digits and pets today