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Navios Maritime Partners L.P. Message Board

  • contraindicator contraindicator Jan 24, 2013 11:49 AM Flag

    Highlights of 1/24/13 CC

    Please correct any inaccuracies and misunderstandings of mine from what I heard of the CC.

    Overall - management was optimistic for future growth and maintenance of the distribution through 2014..

    Current charter occupancy is about 85% for 2013, about 48% for 2014. Due to a lower BDI (but improving),
    management has chosen to do shorter charters and as conditions improve (higher BDI rates) will adjust to longer rates.

    Analyst asked question regarding any affect on distributions from funding for acqusitions and their revenue affecting distirbution growth. Management reiterated that distribution level is very secure at the current levels.

    Economic growth was described as being most vigorous among emerging growth and developing countries - China, Brazil, and India, with rates of about 5 to 6 percent involving the need for transportation of materials to build infrastructure.

    Another analyst asked a question regarding the use of leverage through bank lending to fund acquisitions versus drawing upon the company's assets. Management described its relationship with banks and lending as being good and allowing them to have access to required lending.

    Average age of fleet is 6 years vs. industry average age of 10 years. Management commented on a question regarding the efficiency of operating the more energy efficiently-designed ships and how that positively allows for more efficient operation.

    The CC lasted for about 45 minutes and management spoke in conservative terms and while cautious regarding the current economic climate, viewed conditions as improving.
    The analysts asked good questions. I wish they would have been more sensitive to the fact that English is not the primary language spoken by management and presneted their questions in a clearer and more consise mannner. At times, it took several analysts awhile to pass through extraneous meaningless phrases before they got to the meat of their question.

    Sentiment: Buy

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    • my own opinion is none of these analysts know more about shipping than a shareholder who does his (or her) homework. Natasha Boyden asked if the somewhat ballyhooed new Eco ships we see being ordered currently pose any concern to management. this is something i asked nearly a year ago. the answer then as now... Eco ships make nice headlines, but slow steaming gets essentially the same results and at the point there is any difference, ships the age of Navios' fleet can be converted to Eco power at small expense.

      i also found it interesting that half the Name analysts had an assistant fill in for them. iow, they can't be bothered. don't know if that says anything dramatic, but it may be part of why this remains an "underappreciated" name. jmho.

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