Eli Glickman CEO of Zim (photo by RAPOPORT private news productions)
With a cash flow from current operations of about 1.7 billion dollars and a rich cash box of almost 4 billion dollars, how come Zim stock is only losing height. Eli Glickman, the respected CEO of Zim, tries in a conversation with ice to answer this strange phenomenon and also scatters hints about his plans for this fund and investments in startups.
“My job is to create value for my shareholders. I don’t know how to judge the behavior of the stock but if you ask me if the stock is underpriced? then my answer is simple: the stock price currently only reflects our cash box, so yes, I think the stock is underpriced In short, but in principle, I do not deal with the share price at any point in time.”
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Let’s talk for a moment about sea freight prices
“We continue to see a gradual decrease in container transport prices. We are satisfied that the decrease is gradual and not drastic. But this is part of a global phenomenon when, since the corona virus, people have begun to consume more services and less products, and add to that the problem in the global supply chain and so on, and this is what we get. But in any case, the decrease In terms of prices, it is slow and gradual.”
So what will happen to the contracts you have already signed? Will they open and adjust to the new prices?
“The contracts that were signed in the past have not been opened, but there are customers who are contacting and asking to handle the prices. At this stage, there are no opening of contracts and they are as they were signed, but I cannot make a statement about the future. Regarding the prices: we see a decrease and expect a decrease in prices to a more normal situation because they were abnormal. All of us We understand that the prices at the end of last year – were not normal. We think that the market will stabilize in the coming months, but still, the news is that the prices will be higher than the prices that were in the crisis years of the last few years.”
You started investing in startups. What are you looking for there?
“We invest in startups that touch our activity in one way or another. I can tell you that one or two startups will be worth more in the future than many.”
“We have a 100% investment in Ship-Forward, which is a digital forwarder, and I predict that the current younger generation understands and wants to use a mobile device without picking up the phone to the forwarder, and this is what we have developed. We have a startup with 11 people that works in shipments from China and Thailand to the USA, Israel and Canada, and it will be worth He goes there more than at sea.”
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Who is the target audience of this startup?
“It is designed for small and medium-sized customers. Think of the owner of a bicycle or clothing store who wants to transport less than one container or container. He does not know how to do it after he communicates with the manufacturer. There are actually 30 stations that need to be passed in order to bring less than a container to Israel. We allow To do it in one station in a few minutes with a final price. I want it to be clear, this is not intended for private customers but for small or medium businesses. It is also not intended for the big players and certainly not for households. I see the activity of this startup every month. It just doubles every month and within a year or two it will be a big cash producer.”
“We have plans for 5 billion dollars and as the market goes down we can find opportunities for acquisition.”
direct me
“I can’t talk about the plans too much, but the intention is to invest in our field. That means in the field of shipping and logistics. But I want you to understand, we will not invest in something that will not yield a return on the investment just to make investments.
“We, our job, is to keep Zim profitable. We are sitting on billions of dollars of cash in the company. The banks in Israel do not know how to contain the amount of our money and we moved to spread the money in banks around the world because they do not know how to deal with as much cash as ours, so we spent the money from Israel. Not because we want to, but because we have no choice, we are already putting the banks at risk. This is good news and pride with paying the high tax, but we as citizens should be proud of a company like Zim.”
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