Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Navios Maritime Holdings (NYSE:NM) fell 12% today after the shipping company reported earnings.

So what: Revenue rose 1.6% in the fourth quarter to $130.6 million, but adjusted net loss ballooned to $18.1 million, or $0.18 per share, $0.09 worse than estimated. Dayrates in dry bulk rose 3.8% to $13,291, but that couldn't overcome higher vessel expenses and the company's losses grew.  

Now what: The dry bulk business has been in a particularly long downtrend that doesn't look to end anytime soon. If it slows down again, the $1.5 billion of debt on Navios' balance sheet is a big risk to take for investors. I just don't like the risk reward, and without improving net income I don't see a reason to buy shares today.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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