Friday, February 15, 2008

An Affordable Deep Sea Shipping Stock

If you are interested in an affordable Maritime transport stock maybe Navios Maritime (NM) might be worth a look. They transport raw materials for agriculture, trading, exports, and also the industrial sector. The company owns 26 vessels in total and it is a new fleet of ships. Their vessels are on average only three years old and they are just under 2 million dead weight tons in total. The company did 226 million in sales in 2006.
In march of 2007 the stock was at about $8 a share. In may it went to $9. In june it went over $11.50. In July $13. In August of 07 it fell back to $11. By October it had recovered and was at $14 a share. By November $19. In December it dropped back to $15. In January it fell back to $9. Since this latest low the stock has again recovered and it closed on Valentines day at $12.53 having gained 63 cents on the day. It is up over 50% since last march despite the latest drop and since the market has been getting a little bit more back to normal lately it is likely to keep doing better but if there is one thing about the market that is certain it is that there are no guarantees. It should keep doing well though despite the occasional setback. It is likely that a year from now it will be higher than where it is now. How much higher is a guess but it should return a profit. It is a company that is growing so i would not be surprised if it was up around $20-$25 a share in one year but as i said there are no guarantees.

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