Terrible post. NMM been trading since end of 2007. It's average yield has been 12%. That's 7.5 years with a 12% yield. If you want 'normal' then go buy your P&G...post there too.
gomarcool: I don't have specific information that NMM is at risk to go bankrupt. None whatsoever. All I was saying is that the current yield of 14.5% is not a normal yield. That is spectacularly high. Generally speaking in the world of finance - too high a return can mean risk. Kind of a red flag. Also when a stock goes up to 20, and then drops to 9.25 in a relatively short period of time, that alone gave me cause for concern. I had the experience years ago, where I invested in high yield bonds - a company called Specialty Foods Corp. I was getting a high return, but the company went bankrupt and defaulted on the bonds. I lost $25,000. That taught me a lesson about being greedy and going for a high yield. I also own Proctor & Gamble. I get a dividend from that stock, albeit a smaller yield than NMM. If I had to invest in something, and I wasn't going to look at it for 10 years, 20 years - I would definitely much prefer Proctor & Gamble over NMM. I know that I can not check my Proctor & Gamble for 10 years, 20 years - it will still be there and just fine when I get back. (Barring some type of collapse of the economy - which could happen given our astronomical debt.) I cannot say the same for NMM. Getting 14.5% yield from NMM is wonderful. That's the way investing should be. I wish I had nerve to invest even more. The dividend payments are real money. Just the fact that this is a $1 billion market cap company paying 14.5% indicates there is some risk. Having said that, the fact that the stock price jumped practically over-night from $9.75 to $13.04 is a strong positive indicator of a healthy company. If NMM continues to be a viable enterprise - stockholders on this board will be big winners. That's all I was saying. Nothing brilliant. The mere fact that we are getting 14.5% is a technical indicator of risk - in my view.
Sentiment: Strong Buy
I'd be surprised at a dividend raise. The new ships are needed to off-set loses in the Bulkers. However, that said, I was wrong about not crossing $13 today.
I do stand by one thing I have said; and that is that anyone was a FOOL to sell NMM below $10!
Distribution should be announced early next week. A dividend increase would be awesome. Maybe a raise from 0.4425 to 0.445? Shouldn't be out of the question now that the MSC Cristina is in the fold and her sistership could be delivered during the second half. Whatever AF and company decides, I'm good with.
With cheaper fuel cost, all shipping, trucking, and airlines are doing very very well.
Last quarter CCL made huge profit due to cheaper fuel. GLTA
No would be my guess. I expect to see sideways action for at least a few days, if not a week, before the sellers have sold. Of course I'd love to be wrong!
If we can break through overhead resistance and take out all the sellers @$13.09 ... what then?
Once the big seller @$10 finally got out, we shot up to the next big seller @$13. Too bad for us that the next big seller after that is @$14. Still a 40% gain for those of us buying under $10. Not bad!
We now have the normal run going up to the distribution pulling us ahead, while the recent acquisition announcement is pushing from behind. Hopefully in the next two weeks those two engines will propel us through the $13 roof.
Could be the JV will be an entity operated as a standalone to provide income to the partners. NM might also get a significant benefit if the vessels are all to be under management of Navios Management, which is a wholly owned subsidiary of NM (Navios Holdings).
The part I like the most is that the deal is taking place. AF is clearly proud of that this relationship with HSH bank has been established. It's hard to pick the deal apart with so little information available, but it could be noteworthy that the vessels are all containers or dry bulk, unlike the first deal with HSH. The vessels also seem to be on the smaller so I wonder about the dropdown potential for NMM this time around. I also seem to recall than NMM had a smaller part of the 1st HSH deal, putting up, I think, five percent. Hopefully, we will see how the JV fits into the overall fleet picture when the JV partners report their Q1 earnings.
Their is some concern.... yours. For me, I don't consider a super high distribution covered by cash flow to be a problem. A year from now, I expect Ms. Frangou will have guaranteed the distribution for yet another year... through 2017.