Investing can be a long and arduous journey, but maintaining a steady course over long distances can be as profitable for Fools as it can be for the world's dry-bulk vessel fleet.
From the early stages of the perfect storm that continues to challenge shippers, I have kept Diana Shipping
Like a Capesize sponge, Navios absorbed a 39% decline in the average daily charter rate for vessels and a hefty 56% drop in revenue to post a $12 million net gain in the first quarter of 2009. A commensurate 69% reduction of operating expenses provided the key to a profitable quarter, but the company's greatest achievement remains the strong liquidity position and the security of future revenue flows relative to its peers.
With indebtedness at just 43% of book value and $241 million in cash, Navios shares none of the acute debt repayment concerns of competitors like DryShips
If global overcapacity is the crux of the sector's medium-term woes, then Navios Holdings' order book of seven new Capesize vessels could be considered counter-cyclical. With time charter contracts or contracts of affreightment in place for each of them, however, and the significant bonus of insurance coverage to protect from customer defaults, I believe Navios' growth profile to be reasonable under the circumstances. Toss in a lingering (for now) 5% dividend yield, a diverse fleet composed of owned and chartered-in vessels, and an intriguing port facility in Uruguay, and Navios Holdings continues to return signs of life on this Fool's long-term radar.