ZIM Dividend $6.40 per share: High Beta, High Short Interest

It’s a shipping stock. Heading into a slowdown, prices of the stock have come way off their highs. Next year’s consensus numbers are all over the place. From $-8 to $8!!! Do you think after divesting the dividend it’s a worthwhile stock to own? Does its current price represent a good valuation on future earnings? I really only have questions right now…

That’s some dividend payout. But please remember that the stock has only traded for less than 2 years. The tally is: 2021 (y1) $24.35 and for trailing 12 months: $29.55.

In yesterday’s trading, it soared over $24 before settling back. How are the options? Let’s take a look. Well, there is some depth at the ATM options and OTM which is reassuring (unlike Dropbox).

Given my track record on owing odd stocks… I’m tempted to ignore it. But with a beta of 2 and short interest approaching 20%, I can sure see why premiums are as high as they are. So it’s a gamble.

GERN: a solid company? LOL! Well…

I typically avoid companies that don’t have a track record of management competence, the vagaries of biotech aside. This company has been around for ages, doesn’t turn a profit, has had several notable runs on its stock price (at least), and AFAIK no obvious path to profitability other than ‘milestones’, ‘conferences’ and ‘Qx losses’. TTM losses are even higher than 2021. So… this is not a solid financial basis in my book. The IV is 320 % because the risk is high. If you’re comfortable with that level of risk…? I’m not. I often remember the axiom: “Return OF your capital is more important than return ON your capital”!

GERN: Pop & Drop

This is what I reckoned would happen. It looks like it popped for a 40% gain on 1/4. But it’s already giving most of that back as I write this. The news on its drug was designed to pop the stock and the stock is now retreating on news of a public offering. Be careful trading penny stocks like this.

These are my own opinions. I am not a financial adviser, and do not play one on TV. Do your own research!

Should you ‘loose $40’ on MULN? Nope!

This is a speculative play on a company with currently no profits, no earnings information (according to my broker), and (it appears) an attempt to reverse split for purposes that are undetermined. Investopedia suggests a few…
What Are the Listing Requirements for the NASDAQ? (investopedia.com)

“After a company gets listed on the market, it must maintain certain standards to continue trading. Failure to meet the specifications set out by the stock exchange will result in its delisting. Falling below the minimum required share price or market capitalization is one of the major factors triggering a delisting.”

In short, essentially no volume. If you buy it, you’ll be stuck with it until it expires and you get assigned. It’s unlikely you’ll be able to close the option before expiry. On a penny stock, you’re essentially buying a *minimum* loss of nearly 8c per share up front.

Otherwise… why? It’s a declining investment, with a company that is running out of cash, likely to dilute existing shareholders value even more with further debt sales, no product, no revenue and a massively negative EPS.

You’re also using your buying power instead of buying something with value, and you’re tying up your buying power until January. It makes no sense as presented.

From $968 high to $0.3031, likelihood of being delisted, and only 12 months of cash on the books. It has ZERO revenue, and has had ZERO revenue for at least 3 years. In fact, do you think this stock is junk or not? Share with me!

I’m not a financial analyst, nor do I play one on TV, so these are my opinions only. Do your own fricking research, make your own decisions! If you can’t, don’t copy mine!