Skeptical of Navios Maritime's Success: Beware Dividend Longevity and MLP Status

On May 20, 2008, the Baltic Dry Index (BDI) hit an all time high of 11,793. Not surprisingly, the market values of dry bulk vessels were also close to maximum. A brand new capesize could be sold for $150 mln, while a new panamax was worth about $100 mln. It is quite well known what happened afterwards. BDI crashed and never recovered, just like ship prices. By December 10, 2010, BDI was at 2,095, a new capesize could easily be bought for $63 mln. and a new panamax cost less than $45 mln.... Read more