Paragon Shipping Inc (PRGNF)

[Ecomike]

I have been long on PRGN most of this year. I think we have solid support now at about $4.36 and $4.00, and PRGN should do well the next 4 to 6 weeks. Earnings may be a little lower now due to the stock dilution, but they have more cash now to cover the upcoming newbuilds (caps) they have on order, and the average price of the recent new shares sold was $4.11, setting a good bottom I think, sold during a 50% drop in the BDI. The Capex rates doubled in the last 10 days or so, just as things were starting to look bleak. I have felt that PRGN is worth at least $8/share all year, and still feel that way. This could be a $25 stock in 24-36 months, and it pays dividends along the way. And it is not run by the CEO of DRYS, LOL. I think this stock is just not as well known as DRYS, EXM, and the other that get most of the trader blog discusion.

Depending on earnings reports for DBS companies and the big boys indexes, December is where I potentially expect the next big pull back. I went back from 100% stock to 45% cash back around Sept 21-30, and went back to 20% cash a week ago, from 45% cash. I may be 100% stocks by end of this week.
Disclosure: I am long on EX, PRGN, ESEA, NM, and NMM. Made money on all of them except EXM. PRGN, NM, NMM, and ESEA all still have nice dividends. NM seems to the major owner of the LP in NMM, and NMM is paying a 12% dividend, being an LP it pays out something like 80% of earnings, and it appears it gets some of its liquidity and banking through NM, which is solid with about a 3% dividend.