5-Star Stocks Poised to Pop: Navios Maritime

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Greek shipper Navios Maritime (NYSE: NM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Navios' business and see what CAPS investors are saying about the stock right now.

Navios facts

Headquarters

Piraeus, Greece

Market Cap

$407.9 million

Industry

Shipping

Trailing-12-Month Revenue

$1.05 billion

Management

Chairman/CEO Angeliki Frangou (since 2008)

CFO George Achniotis (since 2007)

Return on Equity (average, last three years)

24.5%

Dividend Yield

5.9%

Competitors

DryShips (Nasdaq: DRYS)

Excel Maritime (NYSE: EXM)

CAPS Members Bullish on NM Also Bullish on:

Diana Shipping (NYSE: DSX)

Vale (NYSE: VALE)

CAPS Members Bearish on NM Also Bearish on:

Citigroup (NYSE: C)

Las Vegas Sands (NYSE: LVS)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, some 98% of the 450 All-Star members who have rated Navios believe the stock will outperform the S&P 500 going forward. These bulls include turtle286 and EggplantWizard, both of whom are ranked in the top 10% of our community.

Last month, turtle286 reminded Fools that Navios "is a solid company with very manageable debt, solid charter contracts in place and it has management team that has been able to successfully navigate through last years credit crisis." Our CAPS member concluded: "The dividend is also a nice perk, though many shippers have slashed theirs recently, [Navios'] seems to be well funded and will hopefully stay."

In a pitch from one day later, EggplantWizard expands on the opportunity:

Navios sports an attractive quick and current ratio in this highly leveraged industry. Many, many dry-ship companies are likely to go bust over the next 2-3 years due to a combination of leverage and fraud, but this company has convinced me that it has avoided both.

In any case, they have a fleet with relatively staggered age and a proven ability to source inexpensive additional charters from competitors to close deals, and an extremely solid opportunity to pick up business (and ships?) from underfunded competitors as this global slump lasts longer than anticipated and fraudulent or over leveraged competitors go bust.

I don't see a solid reason for it to be trading at half of its book value.

What do you think about Navios Maritime, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 18, 2009, at 5:00 PM, Teacherman1 wrote:

    I agree, a good solid company. It will take a while for the shipping companies to pay off big, but at least NM will still be around when the demand comes back. They are well managed, conservative, profitable, and pay a dividend. I am in at $2.28 and sold off some to buy more immediate opportunities, but will hold the balance for the longer run.

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11/6/2009 4:00 PM
C $4.06 Down +0.00 +0.00%
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LVS $15.35 Down -0.12 -0.78%
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