Navios Maritime Holdings, Inc. (NM)

forward p/e 5.219

Upthumb. Spot rates stabilizing. Good cash flow. Nominal balance sheet.

unknown outlook

I found Navios Maritime with a screen that looks for stock with low p/bv ratios and positive price performance. I am heartened by the fact that this company is an active pick in the AllStar Portfolio. Basically, Navios Maritime is a dry bulk shipper selling for 0.51 times book value. The company is currently profitable and recently refinanced some of its debt. I expect that the company will survive the recession and its stock price will soar. The potential rewards seem to outweigh the downside risks.

Earnings estimates (see graph at cnbc.com) Key ratios Price/sales, Price/Book, Price/Cash. Analyst ratings, 5 Stars, Dividend, 5 year graph, New ships and mgmt.

Remember the heady days of the Baltic Dry Index hitting 11,000? Probably not, given all that has happened since then. But commodity prices are going to shoot back up, because of (take your pick) an extended period of loose monetary conditions, or recovering energy prices (due to fundamentals of supply and demand) pass-through to commodities. NM carries commodities on its fleet of modern vessels. Credit conditions might require scrutiny now, but more than one year out, hopefully we'll be in double digits.

Once the economy is back on track these guys will soar!

At least 2 new ships ready for 2010\2011 with new contracts. Most other drybulk shippers are full for 2010!!

Down with market. Good ,stock.

Well run, high insider ownership, good dividend in the mean time.

Family owned Greek shipping company with high insider ownership percentage almost guarantees consistant dividend payout. At current dividend rate you are making near a 10% return on investment during the first year of ownership if the stock and dividend rate remains at it's current level. The stock has been beaten down along with many other dry-bulk shipping companies but Navios sports a backlog of leased vessels well into 2010.

Looking good, will rebound fastest out of any of the shipping companies

Dry Bulker well-positioned for the turnaround, as the world economy recovers.

Bulk shipping is far too battered to feel safe, unless you own a few shares of NM. Navios is under excellent management, and is continuously growing their fleet. With a P/E under 5 and book value < 1, I will be adding to my possiting in the near future.

Good fundamentals.

Outpreform

One of those "personalized" suggestions.

This is my other big holding in my personal portfolio (just hit +50% for the year):

Navios Maritime is incredible.
450M market cap
$4.50 price
$220M in cash - $200M available
$1B in debt (sucks but they own 30 ships!)

Year Available Days Contracted Average Daily
Year Fixed Revenue Charter-out Rate
2009 98.0% $250.2 $25,729
2010 77.5% $288.2 $31,415
2011 54.0% $241.1 $36,044
2012 47.6% $225.2 $37,117

They are guarenteed $225M+ every year!
They have already booked 98% of their revenue days this year!
Stock holder equity is over $800M
Estimated earnings of $0.71 for FY09 and $1.17 for FY10
They have a dividend yield is 5.5% and the payout ratio is 50% (so fairly safe especially with cash pile)
They are a $7 stock this year and $15 by next year. Long term I really like them for growing market share.
They have increased their fleet while others have sold or deactivated theirs.
They have a debt rating of AA+ by the European Union Government Agency

What I'm getting at in this rambling is BUY THEM!

A recovering economy will directly, through recovering exports/imports, raise the value of dry bulk companies.