Categories: Smart Money Masters HotlinesStock Market News

Wilbur Ross’ Shipping Bet Breaks Out to the Upside

Both U.S. and global stock markets closed a strong week.

The Dow Jones Industrial Average rose 0.80% and the S&P 500 jumped 1.44%. The tech-heavy Nasdaq recovered 2.93%, while the MSCI Emerging Markets Index soared by 3.56%.

Your Smart Money Masters holdings performed strongly as well. Navigator Holdings Ltd. (NVGS) rocketed 23.54%, and it is now up 43.84% in the last month alone. PayPal Holdings (PYPL) rode the back of the recovery in tech stocks and soared 7.67%. Five other positions rose by at least 2% as well.

The big story of the week was surrounding Navigator Holdings Ltd. (NVGS), which has stood out in your Smart Money Masters portfolio for its highly volatile performance.

Shares of Navigator Holdings Ltd. soared last week following the announcement late on July 12 that the company was partnering with energy giant Enterprise Products Partners (EPD) on the development of an ethylene export terminal at Enterprise’s Morgan’s Point facility on the Houston Ship Channel.

The terminal will service the ethylene storage and pipeline system with 600 million pounds of capacity. The facility will be connected to Enterprise’s vast ethylene pipeline system, which in turn is connected to numerous major ethylene producers and consumers on the U.S. Gulf Coast. For Navigator, this is a big deal, as 14 of its vessels — nearly 40% of its fleet — are capable of shipping ethylene.

Here is a caveat.

The agreement is only a Letter of Intent. This means the two parties still must negotiate the terms of the partnership. It could take a long time before the first tanker of ethylene is even shipped out of this facility.

Continue to expect that Navigator Holdings’ stock will be highly volatile in the months ahead.

Portfolio Update

Three of your Smart Money Masters holdings — Kraft Heinz (KHC), Costco (COST) and BlackBerry (BBRY) are below their 50-day moving averages (MA) and are currently HOLDs. However, Navigator Holdings (NVGS) is now firmly back above its 50-day MA and is back to a BUY.

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.