Shipping and Navios Maritime

Navios Maritime (NM) bought 4 capesize drybulk ships for half price last week. Looks like they might be worth watching. They have an almost 6% dividend, and they financed half the purchase with bonds convertible at $14/share. Here are the details from Yahoo! Financial.

We will probably see a lot more deals like this one. It seems that banks' reluctance to foreclose is wearing thin. Also, things are so bad that smaller creditors will soon be able to place liens or seize boats themselves. The banks are now being forced to move. Even with the recent market recovery to average levels, there are many companies in trouble. That number will increase dramatically if the market should weaken.