Navios Maritime Holdings (NYSE:NM) is one of those Greek shippers that you may have watched collapse in 2008 along with Diana Shipping (NYSE:DSX) and Dry Ships (NASDAQ:DRYS) thanks to an economic downturn paired with an overcapacity glut.
However, though Navios is still down 50% or so from its 2008 peak, it has stabilized and could be a nice recovery play in the years ahead. Much like railroad stocks, bulk shippers rise and fall with economic activity as more consumer goods and commodities are pushed around the globe.
The biggest risk, of course, is that shipping traffic will stay soft — particularly in commodities like iron ore and coal, which are seeing falling demand thanks to trouble in China. But a lot of that negativity has been priced in, and the other business that will pick up in a recovery will help offset any weakness here.
It’s also worth noting that simply being located in Greece has been an anchor (pardon the pun) on this shipping stock. Investors looking to insulate themselves from the European debt crisis aren’t willing to touch any stock in this nation, shipping or otherwise. NM is trading for a big discount right now as a result, and it will see a nice bounce if Europe gets its act together.
Shares of NM stock are up 18% year-to-date. Throw in a 6% dividend yield as a sweetener and you have a decent case for Navios Maritime.