Tag - Prgn

When Paragon Shipping Inc. (Nasdaq: PRGN) became a public company last August, investors who didn’t set sail with the initial offering priced at $16 might have figured that they had missed the boat. Or not.

The Greek shipping company, formed in 2006, immediately faced some rough seas, with its stock price falling nearly 10% on Paragon’s first day of trading. Put an asterisk next to that drop, however, because on that day, Aug. 10, the U.S. stock markets were roiling through one of their all-too-typical gyrations southward, with the Dow Jones Industrial Average sinking as much as 320 points during the trading session.

Since then, shares of Paragon have been buffeted by the economic headwinds generated in the United States, which have blown across the globe. The young stock crested at $27.34 on Oct. 29, and recently sank as low as $12.51, on Jan. 22.

Analysts who are tracking Paragon don’t necessary believe this is a shipwreck waiting to happen. According to Thomson Financial, two analysts have Paragon at a “buy” rating, while another rated it a “hold.” The median price target calculated by Thomson is a healthy $26.50 — above Monday’s closing price of $18.

Industry estimates place the demand for seaborne dry-bulk shipping growing at better than 6% annually since 2001. While the U.S. economy struggles, the rest of the world is doing all right, with global output having grown about 5% last year. Demand for dry-bulk shipping — Paragon’s specialty — has been rising substantially for more than a decade, and the company has routes serving high-growth nations China and India, as well as other parts of Asia.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will probably open with a drop.

The bears are ready to go on news that an analyst with JPMorgan Chase & Co. (NYSE: JPM) downgraded Bear Stearns (NYSE: BSC), Goldman Sachs Group, Inc. (NYSE: GS) and Lehman Brothers Holdings Inc. (NYSE: LEH) to “sell” from “market perform.”

All three New York-based financial services companies have invested in securities backed by subprime mortgages and have been negatively affected by the slump in the U.S. housing sector.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• America’s Car-Mart, Inc. (CRMT), up 17% on news it swung to a fiscal second-quarter profit.
• U.S Auto Parts Network (PRTS), up 5%.
• Cache Inc. (CACH), up 5%.

Biggest percentage losers:

• China GrenTech Corporation Ltd. (GRRF), down 7%.
• Paragon Shipping Inc. (PRGN) down 6%.
• Parallel Petroleum Corp. (PLLL) down 5% on news it has raised its credit facility to $200 million from $150 million.

Shares of Paragon Shipping Inc. (Nasdaq: PRGN) have sailed to a new 52-week high on news before the start of trading that the Greek sea transportation company will acquire two new carriers.

The “Coral Seas” has a capacity of 74,477 deadweight tonnage (dwt) and can be hired for $54,000 per day for a period of 23 to 25 months. The “Golden Seas” has a capacity of 74,475 dwt and can be hired for $64,000 per day for a period of 11 to 13 months. The two vessels, which cost a total of $178 million, will be delivered between November and December 2007.

“We are pleased to announce the further expansion of our fleet by the addition of these two modern Panamax vessels,” said chairman and CEO Michael Bodouroglou in a statement. “These latest acquisitions clearly demonstrate our strategic aim of acquiring modern vessels with secure employment for the next one to two years.”

Bodouroglou added that the purchase of the two new carriers brings the total number of vessels in Athens-based Paragon’s fleet to 11 and lowers their average age to 6.5 years. The company said that it will pay for the acquisition with bank debt under its existing credit facilities and available cash on hand.

At 3:53 p.m. ET, Paragon Shipping (PRGN) shares had gained $1.99, or 10%, to $21.44, a new 52-week high. The previous 52-week high was $19.90, achieved on Oct. 5. The 52-week low of $13.75 was reached on Aug. 16.

China Technology Development Group Corp. (Nasdaq: CTDC), Novatel Inc. (Nasdaq: NGPS) and AMREP Corp. (NYSE: AXR) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers: