Like Diana Shipping, Paragon Shows Great Potential to Benefit From Recovery
Dan Wieman submits:
After my recent post on Diana Shipping, I received an email asking me to look at Paragon Shipping. I have to say that I’m impressed.
While Diana (DSX) has a stronger balance sheet, Paragon (PRGN) is certainly not over leveraged with a debt to equity ratio of 0.78:1. At year-end Paragon had $134 million in cash and $309 million in debt (current maturities and long-term debt). In 2009, the company had almost $100 million in what I would consider owner cash flow (net income plus depreciation) and no capital expenditures or ship purchases. This cash flow was produced by a company that currently has a $240 million market cap. If that valuation isn’t appealing enough, the company trades at 53% of book value.
Investing, Long Term Investment, stock market | admin March 31, 2010
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