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.
