Only one day away from June 21st; What if the plan gets approved within a day or two and shares suddenly take off leaving those us with not enough shares in dust? or what if the plan does not get approved? what happens if days and weeks go by and we don't hear anything? sp many possibilities it is stressful.
Even $5 is modest as that will take the cap to around $400 Million a far cry from mid-estimate of $742 Million company's two law firms submitted to the court and that is when the oil prices was under $30.
At $10 the cap would still be under what the two attorney firms claimed the equity value to be in their official report to bk court a couple of months ago; Furthermore, at $10 it will be only about half of the market cap of couple of years ago at a time when the company even had $1.1 Billion more debt !!! I am holding onto my shares for long term investment and my retirement as I know this management will once again begin paying good dividends once things pick up.
this stock may be at $1.50-2.00 before June 21 after which may easily double to $3-4 once court approves the plan; let's face it the restructured company will have $1.1 billion less debt while to this day continues to be cash flow positive but what is more 65% of the restructured company is given to shareholders; if this stock is not the best potential in oil sector, or even the whole market, I don't know what is. Also remember that this company is become more efficient while also paying $60 million a year less interest (double bonuses of less interest payment and less production costs); Few contracts and the stock is well worth much more than last years's high of over $17 per share.
The exact value of this new contract has not been revealed but I hear at the very least it is worth around $30-50 million which by itself it is more than Paragon's current market cap. What is more important though is the fact that Paragon is been able to be one of the very few offshores to land a contract this early in oil price rebound with WTI only at mid 40's. This speaks volumes not just to ability of the management and the strong and deeply rooted marketing department but it also verifies what the management and many investors have been saying about how Paragon's shallow water and low price features will be the first to land contracts in any meaningful oil price recovery. Stay tuned for much larger contracts if oil continues its upward movement. Meanwhile let's celebrate this MSS1's awarded contract.
oil now above 45 ...Ocean Rig is more than tripled in the last few weeks with oil moving up but specially after ORIG bought a rig worth over $600 m for a mere $63 m in auction...With Paragon having written off a whopping $1.1 Billion of its debt and the oil moving up I expect the share price to zoom more than any other driller as Paragon is the only oil sector company giving a huge 65% of the restructured company to shareholders...that is 65% of the same Paragon company but only about half as much debt...think about it...once restructuring is done shares should be worth much more than few months ago when oil was near 40 and share near 5 bucks...