Opportunities like this are rare... and they certainly aren't
But if you want the chance to make a lot of money within days --
and secure a 14%
-- then I've found just the stock that could do it...
This company is guaranteed to sell at least 96% of its product in
2012, it's insulated from the European debt crisis and it offers a
. Despite this, the
have sold off in the recent downturn. But I don't see that as a
negative. I think it's an opportunity for the right investors.
I've actually seen this same opportunity before... and in the exact
same stock. Back in 2011, the S&P 500 fell 17% in a little more
than three weeks. Many investors dumped whatever they owned,
sending some stocks down, even if they didn't deserve it.
Shares of this high-yield company dropped 32% in a matter of days,
due solely to the broadermarket sell-off. But soon after, the
shares were snapped back up by alert investors -- rising 29% in the
week following the sell-off. Take a look...
Today, I think history could repeat itself with shares of
Navios Maritime Partners L.P. (NYSE:
Navios Maritime is a
master limited partnership (
that owns a fleet of 18 dry-bulk carriers. It's a relatively
unknown stock... it only trades on about 300,000 units a day (MLPs
trade in units rather than shares). That's what shares of
trade in about six minutes.
The recent sell-off in the broader
has caused panicky investors to dump the shares, just like they did
almost one year ago. And just like back then, I'm already seeing
the stock start to snap back. I think in a matter of weeks... or
even days... the opportunity could be gone.
Already, investors have begun to pile into the stock, sending the
stock up 20% in the past week alone...
But a potential rise is just one reason to like the stock. As an
owner of a fleet of ships, Navios' business is simple. Navios
leases its ships and crews, charging companies a daily fee known as
a day rate to transport commodities.
But day rates have declined dramatically in the past few year
thanks in an influx of new ships, creating a supply glut.
The good news for Navios is that the company has no near-term
exposure to the collapse in day rates, as the
uses long-term contracts, known as time charters, to lease out its
fleet. These deals lock in fixed day-rates for periods of five
years or longer.
All told, 97% of the partnership's available capacity in 2012 is
booked under long-term time charters at day rates significantly
higher than current levels. In 2013, 79% of the fleet is already
booked under long-term deals while around 77% is booked through
Given its insured and contracted charter book, Navios should have
no problem sustaining its current $0.44 per quarter distribution
through to the end of 2014 or longer. In fact, Navios has never cut
, even during the
, which caused many shippers to slash their distribution payments.
Of course, this stock isn't without risk. I've already shown you
that the shares can be volatile. And some investors will be
turned-off that the company is headquartered in Greece. I think
this association is partly to blame for the stock's fall.
But while technically headquartered in Greece, the company's main
assets -- its 18 dry-bulk ships -- primarily operate outside of
Greece and the European Union, and the ships are mainly registered
to ports outside the European Union. Day rates are earned in
dollars and the vast majority of Navios' contracts are signed with
companies based in Asia, limiting its exposure to Greece.
Navios Maritime Partners is organized as an MLP. But thanks to
its incorporation in the Marshall Islands, it reports distributions
on a standard form 1099, not the K-1 used by most MLPs. This means
that U.S.-based investors can hold the MLP in tax-advantaged
accounts without worrying about
unrelated business taxable income (UBTI)
consequences that apply to many MLPs.
Action to Take -->
Make no mistake, this opportunity isn't for everyone. But the
chance to lock in a
of nearly 14% and the possibility of a quick gain in the shares
simply doesn't come along often.
For more on international dividend-payers, I invite you to
read my latest presentation
, where I've also included names and ticker symbols of many
high-yield international plays. I've even included a full list of
17 U.S. companies yielding above 12%.
Visit this link to learn about these stocks
-- Paul Tracy
Paul Tracy does not personally hold positions in any securities
mentioned in this article. StreetAuthority LLC owns shares of NMM
in one or more if its "real money" portfolios.
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