Paragon Shipping Inc. (NASDAQ:PRGN)

CAPS Rating: 3 out of 5

The Company provides drybulk shipping services worldwide.


Player Avatar osucowboys344 (28.68) Submitted: 3/29/2011 2:11:50 AM : Outperform Start Price: $33.38 PRGN Score: -222.93

This company is extremely undervalued. I put 10k in at 3.12 and will continue to accumulate regardless of the direction the stock marches. Management took out an equity offering to expand their fleet within the last few months and I believe this was a well timed acquisition that should make way for a turnaround story or explosive growth once the economy recovers. While last quarter PRGN did show a loss contributed to an increase in selling, general, and admin expenses and a large investment in fleet, the loss was deemed reasonable based on the increase in fleet size and related maintenance expense. Some investors were concerned about their related party transaction for maintenance of the ship, but I see this as a great opportunity to decrease variable cost in the future. I expect this stock to outperform for the current year and to show significant long run appreciation. How can you say no to putting your money in company with a book value of .33 and a 6.5% dividend while you wait for the stock to appreciate?

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Member Avatar poconos27 (< 20) Submitted: 4/4/2011 9:04:07 AM
Recs: 0

Any hints at what the Paragon IPO means for PRGN's stock which I own?

Could this be why the PRGN CEO sold a load of shares earlier this year?

Member Avatar osucowboys344 (28.68) Submitted: 4/5/2011 8:28:59 PM
Recs: 0

The IPO could be a good development for PRGN common stockholders if the IPO is a success. Currently, management is trying to avoid further diluting equity in PRGN by creating a third party company for box ships. Now, the company will be traded under a different ticker which is (TEU) (I think). PRGN will own a certain percentage of the company and probably be classified under longterm investments. However, it is not clear whether holders of PRGN will receive shares of the newly created company, but it could result in extra cashflow due to PRGN owning say 22% of the company. So, I will say it is probably good that management did not further depress the stock by diluting PRGN. If the IPO creates enough value, than I could see this being a good cash flow for PRGN common stock holders and will may help management avoid cutting the dividend. It will be interesting to see how all these different factors are perceived by the market and the relative success of the new IPO.

Member Avatar IIcx (< 20) Submitted: 6/23/2011 11:17:14 AM
Recs: 0

Also see:

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