Yes PGN is the older part on NE, this why even it was 22% of book (=$20 PGN stock price), they opened at $17.5.
Point is they came down 50% because all the above reasons:not much info, holders selling (some like S&P500 holders forced selling) beside negative sector sentiment at extreme (Hero came down from $7.5 last year to $3).
This is why PGN IS the better value compared to NE and the greater chance for big up move.
One last point: they build too many deep sea drillships but no body is building old, low rents ships. Maybe this market is actually safer....
apdplus, it is an apples to oranges comparison...two stocks with two different risk profiles for two different types of investors...I think telling a reader who may not be well versed that PGN and it's market is "safer" should be disclosing their interest...I am long NE and someone who sold PGN on day one (long pre-planned) at 11.64 (a tad lucky) because of what I believed was substantial contract renewal risk as many newbuilds will be working at less of a spec level to get and keep work, IMHO.
Stock was up only 4 cents today. Market was up 175 points. That's discouraging. I owned 2500 shares of PGN only because of the spin-off. I sold them today. Clearly, NE wanted to spin off PGN for whatever reasons and basically shoved the PGN shares down NE shareholders' throats. NE shareholders had no say in the matter. I could be wrong but since NE didn't want PGN anymore I figured there were reasons for it, that PGN's future earnings might be poor, etc. I wasn't comfortable with the risk in owning PGN anymore. I was already down almost 20% with PGN since the spin-off. There's very little research available on PGN. Future prospects for the company are a wild guess in my opinion. Also, PGN faces a lot of competition.
As one who received PGN shares in the spin-off, I am disappointed, but not surprised, by the drop in share price. After most spin-offs, a number of shareholders will sell their shares. At the current price I believe PGN to be undervalued considering the sizable backlog ( over $2.6B) and therefore plan to retain my shares. I will await announcement of a dividend before considering buying more shares.