This 1 Stock Will Skyrocket in a Few Days — Transcript

What if I told you there is a stock so undervalued that its CEO is considering buying the entire company? Wall Street analysts can't explain why it trades at only 1.6 times earnings while its competitors trade at like three times higher valuations. And it just posted a massive earnings beat despite market skepticism. This is, in my humble opinion, the biggest opportunity nobody's talking about.

higher valuations and it just posted a massive earning speed despite Market skepticism this is in my humble opinion the biggest opportunity nobody's talking about while they Chas the next AI stock who are worried about the selloff now Winston here of course has done all that

While they chase the next AI stock, who are worried about the selloff now, Winston here, of course, has done all that research. Haven't you, Winston? There he is. So, you know, take it with a pinch of golden retriever salt. But I've spent the past three weeks analyzing shipping companies. Yeah, not the most glamorous sector. It's actually one sector I used to cover when I was working in banking, but that's precisely where the money is right now.

to cover when I was working in banking but that's precisely where the money is right now look for those of you with Tik Tok brains in short on time here is the essence my trading experience tells me Zim

Look, for those of you with TikTok brains, in short, on time, here is the essence. My trading experience tells me Zim is that rare financial phoenix story. They've pulled off what I'd call the shipping miracle of the decade, transforming a staggering $2.7 billion loss into a $2.1 billion profit in just 12 months. What's actually mind-blowing? Well, while the market sleeps, this company is sitting on $3 billion cash, more than the entire market cap. Yes, and it's trading at valuation levels that make absolutely no sense unless you believe global trade is ending tomorrow for good.

company is sitting on $3 billion cash more than the entire market cap yes and it's trading at valuation levels that make absolutely no sense unless you believe global trade is ending tomorrow for good even their own management team is essentially saying if

Even their own management team is essentially saying, if you won't value us properly, we might just buy the whole company ourselves. And look, I've spent years in trading, and I've learned that shipping stocks were always the ugly ducklings that made the most money during market transitions. Just earlier in March, Zim announced their Q4 results. They beat expectations off the market by 30%. Yet the stock, well, it actually dropped. Why? Because most investors are too focused on the general panic happening in the US and ignoring these cash-generating machines.

their Q4 results they beat expectations off the market by 30% yet the stock well it actually dropped why because most investors are too focused on the general Panic happening in the US and ignoring these cash generating machines if you

If you chime in right now, I want to be completely transparent with you. I don't own the stock, but I plan to own the stock, and I will walk you through. We'll look at the chart together, and I'll tell you where I plan to buy, just to be 100% transparent. And if you felt that the last few weeks were a little queasy, didn't feel that good to see your stocks down 10, 20, 30, 40%, depending on what you're in, well, you know that that's actually avoidable. That pain is not necessary.

transparent and if you felt that the last few weeks were a little queasy didn't feel that good to see your stocks down 10 20 30 40% depending on what you're in well you know that that's actually avoidable that pain is not

For you to repeat every single time the market dips, it does this kind of dip, by the way, every single year. So if you want to avoid that, well, you need to learn where you sell. Because yes, the hodlers will tell you you should never sell, but that is just nonsense because you are not doing this to please a stock. You're doing this to make money for you and your family so you can live a beautiful, free life. Isn't that right?

hodess will tell you you should never sell but that is just nonsense because you are not doing this to please a stock you're doing this to make money for you and your family so you can live a beautiful free life isn't that right and

And what happens after the selloff is finished? The greatest opportunities, the greatest money-making opportunities, will spring up, thousands of them at the same time, and you'll be like, I don't know which one to pick because I don't really have a framework, I don't really have rules, and I don't know if this is the bottom of the market, is this the rally, is this right? That's what most of us go through. That used to be me.

rules and I don't know if this is the bottom of the market is this the rally is this right that's what most of us go through that used to be me and then I was really lucky I landed a job in

And then I was really lucky. I landed a job in banking, and I had a lovely boss who taught me, not just because he was lovely, but because, well, he wanted us to make more money as a team. And if the team makes more money, he got a bigger bonus. That's the motivation. That's why the bankers learn.

that's the motivation that's why the bankers learn so if you want to learn exactly what I learned there for free I'll give you that knowledge takes 15 minutes to learn all you got to do is watch my free master classes down below

So if you want to learn exactly what I learned there for free, I'll give you that knowledge. It takes 15 minutes to learn. All you got to do is watch my free master classes down below. It's at FelixFriend.org/getfree because I want you to get free. I managed to quit the corporate rat race. I no longer have working hours. I no longer have an alarm. I wake up. I occasionally stumble over here into my little studio, and I like to record and share things because it's insanely gratifying to see so many of you doing so well because of it. So go to FelixFriend.org/getfree now.

record and share things because it's insanely gratifying to see so many of you doing so well because of it so go to fix F I get free now what surprised me most about Zim wasn't just the numbers it was how the company has positioned

What surprised me most about Zim wasn't just the numbers. It was how the company has positioned itself for what's coming next. So, are you ready to see why this might be the most compelling contrarian opportunity of 2025? The answer to that is yes. Write "opportunity" in the chat. If that's too long a word for you to type, "op" will also do.

do so let me show you what my research has uncovered first what's actually happening in the shipping world right now well let's take a step back and look at the bigger picture before we zoom in on Zim specifically because to really

So let me show you what my research has uncovered. First, what's actually happening in the shipping world right now? Well, let's take a step back and look at the bigger picture before we zoom in on Zim specifically because to really understand the opportunity, you need to understand the market.

the key trade routes between Asia and Europe and Asia and North America continue to dominate Global Commerce I mean just think about it almost everything in your home probably traveled on one of these routs at some point now what keeps shipping Executives

The global shipping industry is growing at about 3% a year. Not exactly headline-grabbing stuff, right? But here is what most people miss: it's the underlying complexities that create these pockets of opportunity. The key trade routes between Asia and Europe and Asia and North America continue to dominate global commerce. I mean, just think about it. Almost everything in your home probably traveled on one of these routes at some point.

and they came crashing down now they're stabilizing but still face downward pressure have you noticed how shipping costs affect literally everything you buy well it's one of the reasons inflation is abating and that's exactly why this matters to everybody not just

Now, what keeps shipping executives up at night? Well, quite a lot, to be honest. The industry is facing the perfect storm of challenges that are creating winners and losers. Freight rates have been on this roller coaster right since the pandemic. They shot up and they came crashing down. Now they're stabilizing but still face downward pressure.

reshaping that whole industry first environmental regulations are forcing massive Fleet upgrades companies that don't adapt will literally be banned from major ports and second digital transformation is creating this massive efficiency gap between the modern operators and the dinosaurs of the

Have you noticed how shipping costs affect literally everything you buy? Well, it's one of the reasons inflation is abating, and that's exactly why this matters to everybody, not just investors. And then there is, there's the fuel situation. Costs are up, which eats into margins, which don't even—well, don't even get me started on geopolitics.

more fuel efficient so think about that what that does in terms of costs compared to competitors and the most telling indicator well their balance sheet Zim is sitting on $3 billion in cash in an industry where Capital flexibility determines who survives the

But here's what gets really crucial for understanding Zim's position. I'm seeing two major transformation factors reshaping that whole industry. First, environmental regulations are forcing massive fleet upgrades. Companies that don't adapt will literally be banned from major ports. And second, digital transformation is creating this massive efficiency gap between the modern operators and the dinosaurs of the industry.

survive well let me know in the comments if you've ever invested into shipping stocks before because it's a can be a complex industry but the company itself is even more fascinating than the industry Dynamics let's look at what

And that's exactly where Zim has quietly been making its moves. While everyone else was distracted, they've been aggressively investing in LNG-powered vessels—that's liquefied natural gas—which, by the way, is not just cleaner but it's also 22% more fuel efficient. So think about that, what that does in terms of costs compared to competitors.

American routes so instead of opening a restaurant chain across basically the whole country they decided to dominate specific neighborhoods with exceptional service and this targeted strategy allows them to optimize operations in way that larger competitors simply can't match their Fleet modernization program

And the most telling indicator? Well, their balance sheet. Zim is sitting on $3 billion in cash in an industry where capital flexibility determines who survives the bad times. It's basically like having an insurance policy and a war chest combined.

shareholders but what really caught my attention was their digital approach they have this crazy real-time cargo tracking integrated supply chain system that you know would make Palante customers drool and to really understand the stock we need to talk about numbers

So I have to ask, when was the last time you considered how shipping companies actually make money? Does it make sense why some thrive while others barely survive? Well, let me know in the comments if you've ever invested in shipping stocks before because it can be a complex industry.

industry averages around 10 the direct competitors like MK and haid are trading at about five so what does this mean in plain English the market is essentially saying we don't believe Zim's profits are sustainable but here's what they're

But the company itself is even more fascinating than the industry dynamics. Let's look at what makes Zim different from the rest of the pack here. Unlike the massive carriers trying to be everywhere at once, Zim has taken this laser-focused approach on specific trade lanes, particularly Asia to the US East Coast and Latin American routes.

specific events or trends that could trigger a reating and that's exactly what we're going to explore next so Zim has several potential game changers on the horizon the most intriguing Catalyst and frankly the one that got Winston's ears perked up didn't Winston Winston

So instead of opening a restaurant chain across basically the whole country, they decided to dominate specific neighborhoods with exceptional service. And this targeted strategy allows them to optimize operations in a way that larger competitors simply can't match.

of this but there's the try mindboggling part the company's net assets are worth approximately $25 per share which is about 56% higher than the current stock price around $16 yeah $16.40 as we're recording this and that's just a

Their fleet modernization program is also very impressive. By the end of 2024, so last year, over 50% of their capacity came from new build vessels, but 40% of them are powered by LNG gas, which brings the millions in savings flowing directly to the bottom line or to shareholders.

not right that's essentially what's happening with Zim right now if management executes a buyout at even a modest premium to the current price early investors could see a pretty significant return and the second Cal catalyst is their Fleet modernization I

spent three days literally going through their Fleet data and I have to tell you their investment in these LG powered vessels is huge these ships are not just better for the environment they are just much much more efficient I mentioned it

earlier they save about 20 25% fuel costs and fuel is about 40% of operating expenses for Shi companies so it's it's an enormous saving it's a 10% Improvement on margins and what does that mean it means that Zim can now be

the cost leader so then it's not just about surviving the next downturn it's about thriving while competitors struggle to break even much as I'm struggling with these soft ears here so the third catalyst is their niche market Focus while the MK and haids try to

dominate everything Sim Has This brilliant approach of targeting very specific high value Roots only now the shipping Market is notoriously fickle Freight rates go up and down but we're seeing signs of stability in 2024 the average Freight rate increased 57%

year-over-year which is well still well below the pandemic Peaks but it's a healthy kind of normalization and global trade volumes are going to grow modestly not huge Tailwind but still a Tailwind nevertheless but if you forget about all

of that for the moment what actually makes the company great well it's typically management and what really stands out to me is Management's execution through the really challenging times that chipping has just been through you know bouncing back from a

2.7 billion loss to a$2 billion profit doesn't happen by accident so they strategic initiatives their Vision have facally fall into into three areas here first the LG powered Fleet that they aggressively aggressively expanding because it just saves so much in costs

and therefore gives them a competitive Advantage second Ling down on those high growth trade routes and third and this is crucial they're maintaining this fortress-like balance sheet $3 billion in cash in shipping cash is King it allows you to weather the downturns take

advantage of distressed asset sales and fund growth and they're also paying a massive whopping dividend on top so when I look at Management's track record here for me it's kind of hard not to be impressed by it they've consistently

demonstrated that they can adapt to whatever is thrown at them now we understand the fundamentals here so how do we approach this as a as an as a as an investor well I pulled up the chart here in in Trad vision. which is the

tool that we use to basically give you insanely good quality data and and Analysis and indicators and everything else and what I was surprised by and that's really why I think this is a fundamental contrarian opportunity is we

had earnings here and the stock massively dipped as a result we went from 20 to like $18 at one point even $17 in a bit down here now notice the candle on off Friday and I'm going to I'll it's that one here

I'll redraw it for you so it's a little bit clearer the candle looks like this right that's the candle that P here was painted in so what does that mean well it means that we dropped all the way down to here which was scary at $730

$170 and then we rallied up almost an entire dollar to close at the very very very very top end of the day's trading range and that says to me the dip buyers are out in full force and they're seeing the

selloff as an opportunity and a real opportunity it could be now from a chart point of view if you familiar with my my my rules that I put out in my master class and that I follow this right now

is in breach of several of our of our classic rules so you could say well why don't we wait till we break above the 50-day moving average line and maybe even the 150 so why don't we set a buy

order um that buys us at say $21 or slightly below here because that way we know that there is really some oomph in it and then we check on the volume and that's probably a very very good thing

to do and I haven't exactly decided the way I I I will post that I might also consider options again that isn't for everybody but at the moment you don't want to be buying options when IV percent is at 73 options are expensive

and let me show you a little illustration here you see this options trade right so if you set up say you bought a a call like a leap option A year out at at this level here right so

what would happen is that say say we we go into into May or something so and and we say we're Trading still at roughly the same level it's around $20 we'd make 165% right but if volatility came down because we were

going up now the same $20 we're only making 50% so volatility you see how that this is the this this white little line here is your break even the green bits where you make money the red bits where you

lose money as volatility moves up and down it has a huge huge huge huge impact on um profits so you really need to understand that before you do anything and I I just recommend people start with start the chart start the stocks get

really good at it get your risk management really really dialed in be really clear about the points where you buy and then if you're loving that and you're doing incredibly well and nice and consistent then maybe have a think

about options as well because it is a very very very cool tool but yeah right now we need to see a little bit more of a move up that candle there on Friday might well be the market bottom it's a

classic Telltale sign but I like to wait always an extra candle or two to see this is actually happening I I think the opportunity is significant um now with anything there is risk of course so how do we approach that make it a really

small position and of course I'm not telling you to do this I'm just telling you what I'm doing so say say um you put 1% of your portfolio into a position like this right and it doubles or triples or something like that well then

that 1% gives you 100% gain and now you have 2% and you're like Yay brilliant fantastic right but if the 1% goes to well it collapses and all blows up tomorrow well you have lost 1% you don't really notice it right so for me I kind

of look for these outsized gains and we can make that 2% potentially that gain a much greater one by by using some some leverage tools and they're responsibly of course so always do things small don't do things you properly understand

but I just want to share some of these ideas with you that are a little bit like off the beaten beaten path here because I think it'll hopefully inspire you to learn so you too can spot these opportunities and you too can

potentially make you know a lot more money from your money which is really what this is all about but of course there risks with everything shipping is a cyclical business you don't really want to be holding shipping stocks for

the long term because it's a mad mad mad mad world just look at just look at look at the stock chart here right this was trading at uh $89 so at 18 right now we're kind of interested in it we actually

interestingly called a Breakout I I actually notice that down here at about $15 and then since then we've basically followed the pattern that you will see in my master class pretty pretty nicely so we might actually want to draw a

little line here and and then say well you know wait wait for the breakout and go a little higher so learn the rules that's always more important than the Golden Nugget because I can give you a fish right but the fish will go smelly

it'll go off and then once you've eaten the fish you like and where is the next fish so i' much much rather give you the the fishing rod give you the rules give you the skills so you can be a better

investor for yourself and your family and and get to freedom and enjoy yourself which is really what this is all about if you enjoyed the video share it with a friend or a golden retriever there's one sleeping down here

Winston there he is there he is attentive as always and we wish you a beautiful day if you're worried what your favorite tech stocks are going to do this week or they continue to Rally or they crash and

burn again this is the right video for you I'm going to walk you through my week ahead watch list here the S SMP NASDAQ Tesla Palante volatility index Sofi Microsoft