Navios Maritime Holdings, Inc. (NM)

F4Phanatic (27.92) Submitted: 9/23/06 2:07 AM : Start Price: $4.93 NM Score: -32.98

Navios Maritime Holdings, Inc. is a worldwide leader in seaborne shipping, specializing in worldwide carriage, trading, storage and related logistics of international dry bulk cargo transportation. Navios' core fleet consists of 32 vessels, one of the youngest in the industry. The average age of 4.3 years versus an industry average of approximately 15 years. The company owns 10 modern Ultra-Handymax vessels with 4 under long-term charter and holds purchase orders for 9 additional vessels. Navios also owns 6 Panamax vessels with 12 on long-term charter and holds puchase options for 7 vessels.

Navios operates the largest fleet of very modern Ultra Handymax vessels. These trade globally but with a particular focus on commodity movement in the Americas. Each of the vessels has a deadweight tonnage of between 50,000 and 55,000 tons. These vessels are equipped with large-capacity cranes and grabs designed for extra reach and maximum flexibility for customer requirements.

The Panamax fleet is employed in Navios' business around the world, meeting customer requirements and spot market movements. The Panamax vessels have a deadweight tonnage of 70,000 - 83,000 - the cargo base includes iron ore, coal, coke, bauxite, alumina, grain, lead and zinc concentrates and fertilizers.

Navios has extensive experience handling complex freight movements and bulk cargo logistics around the world and in providing innovative solutions for their customers special requirements. Navios owns and operates the largest bulk transfer and storage terminal in Uruguay. Situated in a tax-free, free trade zone in the Port of Nueva Palmira, it operates 24 hours a day, 7 days a week and has a storage capacity of 205,000 tons of grain. The terminal's dock is capable of loading vessels at rates of up to 20,000 tons per day, a second dock is capable of discharging barges at rates of 14,000 tons per day. The economic rationale in creating and launching an independent logistics business port and logistics companies is that it will create shareholder value. Logistics companies trade at a significant premium to traditional shipping companies. Navios Port is not valued at comparable public port multiples.

Navios also provides world wide technical ship management. These include technical, operations, maintenance, security and safety, environmental protection, purchasing and crew activities. Navios ensures that all vessels under its management comply with standards higher than mandated by international and local rules and regulations.

Navios also conducts risk management for other vessel owners and operators. This expetise extends to vessel, cargo and fuel hedging strategies. The company has an excellent loss prevention record which strengthens its insurance terms.

There is a healthy demand for sustained high world seaborne trade growth. Dry cargo trade should increase to 93 metric tons in 2006 compared to 2005. Navios' order book includes 66.9 mdwt (19% of fleet) of scheduled deliveries through 2008 and beyond.

In 2006 secured employment is 87.6% of available days fixed, equivalent to $138.2 million in revenue. The average daily chater-out rate is $17,242.

In 2007 secured employment is 24% of available days fixed, which is equivelant to $43.2 million in revenue. The average daily charter-out rate is $17,434. Navios has signed important long-term contracts with Archer Daniels Midland, Cargill and Louis Dreyfus.

Navios was formerly known as Nautilus Maritime Holdings, Inc. On August 25, 2005 International Shipping Enterprises, Inc. acquired Navios.

Financials for Navios include,

$24.6 million EBITDA Q1 2006 - 67.5% growth compared with Q1 2005
Quartely didvidend $0.0666 per share
$209.71 million reserve
Yearly 2005 EBITDA $88.82 million
Trailing P/E 7.78
Forward P/E 4.71 fye December 2007
Total Debt $560.71 million.

The price is right for Navios!

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