2023-05-25 00:22:01 ET
Summary
- Company reports profitable first quarter results due to improved contributions from Navios South American Logistics ("Navios Logistics") and Navios Maritime Partners ("Navios Partners").
- That said, it's hard to assign any meaningful value to Navios Logistics as the company remains heavily indebted and faces a $500 million senior debt maturity on July 1, 2025.
- Parent Navios Maritime Holdings is looking even worse with debt and preferred stock obligations exceeding assets by more than $100 million.
- Effectively, both the common and preferred shares now represent options on major improvements at Navios Logistics, substantial price appreciation of Navios Partners' publicly-traded common units, and particularly a buyout at favorable terms by controlling shareholder, CEO, and Chairwoman Angeliki Frangou going forward.
- As I consider none of the above-listed scenarios as likely in the near- to medium-term, investors should avoid both the common and preferred shares or even consider selling existing positions.
For further details see:
Navios Maritime Holdings: Sell On Lack Of Catalysts And Tangible Value