Friday, May 22, 2009
Friday, 22 May 2009
In March we brought you Star Bulk Carriers at $1.82, the stock now trades upwards of $4.14 and is looking for more. Shipping rates were at an all time high in June of '08 and and subsequently fell to a six year low. The Baltic Dry Index (BDI), which represents the daily average of prices to ship raw materials, has been steadily moving off its lows. Many consider the BDI as the leading indicator of forthcoming global trade.
With prices now on the rebound the entire sector stands to benefit. In an industry where many have suspended dividends, one company, Paragon Shipping (PRGN) $4.74, continues to deliver, announcing a quarterly dividend of $0.05 per share, payable on June 9, 2009 to shareholders of record as of May 29, 2009.
In addition, the Company has a share repurchase program of up to an aggregate of $20 million of its Common Shares, through December 31, 2009.
The number of shares short have been reduced from 876K to 191K in the past month. The price to earnings ratio is ridiculously low at 1.85, the industry average, itself very low is around 5 and the Company is currently sporting a one year price target price of $11.01.
Paragon Shipping just reported net income of $19.2 million for the first quarter of 2009, earnings per share, basic and diluted for the first quarter of 2009 were $0.54. For the remainder of '09 Paragon Shipping says that it has booked 95% of its capacity. All things considered, Paragon Shipping appears to be a relatively safe play, if such a thing exists, in what is a volatile sector.
Paragon Shipping (PRGN) a global shipping transportation company specializing in drybulk cargoes.
Its vessels are able to trade worldwide in a multitude of trade routes carrying a wide range of cargoes covering a number of industries, including iron ore, coal, grain, bauxite, phosphate, and fertilizers.
The fleet carrying capacity totals 765,137 deadweight tons.
PRGN Investor Highlights
The Company reported net income of $19.2 million, or $0.71 per basic and diluted share for the first quarter of 2009.
Adjusted net income for the first quarter of 2009 was $14.7 million, or $0.54 per basic and diluted share.
The Company's Board of Directors declared a quarterly dividend of $0.05 per share with respect to the first quarter of 2009, payable on June 9, 2009 to shareholders of record as of May 29, 2009.
Time charter revenue for the first quarter of 2009 was $41.6 million, compared to $40.5 million for the first quarter of 2008.
The Company operated 12 vessels during the first quarter of 2009, earning an average time charter equivalent rate or TCE rate, of $37,179 per day, compared to an average of 11 vessels during the first quarter of 2008, earning an average time charter equivalent rate of $39,098 per day.
Has a one year target price of $11.01.
Trailing P/E of 1.85.
Shares short have been reduced from 876K to 191K in the past month.
The Company's board of directors has approved a plan for the repurchase of up to an aggregate of $20 million of its Common Shares, which may be repurchased by the Company from time to time until December 31, 2009.
Source: The OTC Investor