Navios Maritime Partners: Investors Celebrate Buyback Announcement And Non-Dilutive Dry Bulk Fleet Acquisition

Henrik Alex profile picture
Henrik Alex


  • Navios Maritime Partners bails out debt-laden former parent Navios Maritime Holdings in a $835 million deal thus adding another 36 dry bulk carriers to its fleet.
  • While one can discuss the suboptimal capital allocation, the transaction won't result in additional dilution to common unitholders.
  • Company surprisingly announced a $100 million common unit buyback program but near-term utilization is likely to remain limited at best as cash will have to be replenished first.
  • With the long-standing Navios Maritime Holdings overhang now being addressed, risks for investors appear to have decreased substantially.
  • With the units still trading at a tiny fraction of net asset value, speculative investors with the ability to stomach inherent volatility in shipping stocks should consider using setbacks to initiate positions.

Serenitas Schiffe

Daniel Wright/iStock Editorial via Getty Images

Last week, Navios Maritime Partners (NYSE:NMM) or "Navios Partners" surprised market participants with the acquisition of 36 dry bulk carriers from debt-laden former parent Navios Maritime Holdings (NM) or "Navios


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Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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