Paragon Offshore
Shares of Paragon Offshore, which provides offshore drilling rigs, were trading around $9 each at the start of September, a time when oil prices were heading for a precipitous fall of more than 50%. Shares of PGN tumbled to a low of $1.05 in March, stripping Paragon of nearly 90% of its market capitalization. While the consensus estimate of six analysts on Yahoo Finance for earnings per share for next year isn't as rosy (consensus net loss estimated in 2016), analysts are calling for 2015 earnings of $0.55 per share for Paragon. At a current share price of $1.75, that’s a projected P/E ratio of 3.2:1. Even amongst depressed oil prices and with expectations of swinging to a loss in 2016, that's arguably a low ratio. Oil has rebounded recently as pundits speculate about cap ex and future oil prices, helping shares of PGN recover some of the losses, including a high of $2.19 last month. At $1.75 per share, Paragon Offshore commands an enterprise value of $2.25 billion and a market capitalization of $149.7 million.
