NMM has a great setup, but risk of an earnings miss
Navios Maritime is a container ship company that transports, among other things, iron ore and grain. It's been down this year due to the trade war, but recovery is long overdue. NMM has a forward P/E of 6.35, and an extraordinarily low P/B of about 0.25. It's dividend yield is over 7%.
We did get some bearish shipping data the other day, but it seems to have been an anomaly due to shippers rescheduling some of their loads in order to cut costs. Today we got news that China's iron ore imports are close to a record high, and tomorrow we should get a Phase 1 trade deal that includes an agreement buy China to buy more soybeans. These should be good signs for NMM.
However, NMM next reports earnings on 1/29 and has a negative ESP of -32.77% from Zacks, so beware the possibility of an upcoming earnings miss. This is also a fairly low-float stock, so expect volatility. For low-float stocks, relatively small changes in volume can lead to big moves in price.
We did get some bearish shipping data the other day, but it seems to have been an anomaly due to shippers rescheduling some of their loads in order to cut costs. Today we got news that China's iron ore imports are close to a record high, and tomorrow we should get a Phase 1 trade deal that includes an agreement buy China to buy more soybeans. These should be good signs for NMM.
However, NMM next reports earnings on 1/29 and has a negative ESP of -32.77% from Zacks, so beware the possibility of an upcoming earnings miss. This is also a fairly low-float stock, so expect volatility. For low-float stocks, relatively small changes in volume can lead to big moves in price.
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