Navios Maritime Holdings, Inc. (NM)

ObEgOnG (< 20) Submitted: 8/01/07 1:54 AM : Start Price: $14.71 NM Score: -45.43

-NM is a long term play with very high upside. They currently control 40+ ships, with half chartered in at rates well below current Baltic Dry Index values. These rates will reset over the next 2-18 months, furthering their earnings potential as dry bulk rates continue to increase.

-They have 11 ship purchase options that cost them $300 million. These ships are valued in the current market at about $1.1 billion.

-They recently acquired a fleet of ships supporting coal contracts to China, and they will be employing these ships to higher contract rates in the next few years. They also have 9 ships on order from 2008-2011.

-They own a port facility in Uruguay that is connected to most of South America's grain and coal activity via river channels, growing at a rate of 10% per year.

-Short interest is up 50% over the past month.




Class and ship Redelivery Old rate Recent charter

Supra Apollon 9/28 16,150 41,200 2yr
Supra Kypor 7/04 16,844 41,200
Supra Meridien 10/01 14,250 41,200
Pana Esperanza due Aug. 52,000 6mo

Capes, 5 Not currently showing charters could be on spot at 100k or more or on term charters in the 50s to 60s.






Conclusion: As their charter rates expire and get renewed at current updated rates, their earnings should explode over the next couple of quarters.
Very bright future.

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