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Renewed interest in container shipping stocks

Photo: ZIM ZIM Antwerp in Vietnam
The container sector, the darling of shipping stocks in 2021, is gaining renewed interest.

Among independent analysts, J Mintzmyer of Value Investor’s Edge, a private advisory service, was highly successful with his early backing of Zim (NYSE: ZIM). Perhaps just as noteworthy, he called the top earlier this year, before the container names receded in March.

Mintzmyer is now looking for a rebound within the boxship equity sector.  In a recent posting on Seeking Alpha regarding shipowner Danaos, (NYSE: DAC), lately trading around $65 - $70 per share, he wrote: “Our current fair value estimate at Value Investor's Edge is $125 per share, which implies around 80% upside to recent trading ranges.”

In his analysis, he mentions recent share buybacks, and notes that: “DAC short interest has increased this summer and now looks to be a coiled spring ahead of what's expected to be multiple years of consecutive earnings blowouts amidst surging free cash flows.”