20 Januari 2014

[200114.EN.SEA] Morgan Stanley Downgrades Box Ships to Underweight From Equalweight

NEW YORK-based Morgan Stanley investment bank downgraded its rating of Paragon Shipping's Box Ships from Equalweight to Underweight with a price target of US$2.50.

Box Ships closed at $3.06, with a 52-week range of low $2.80 and high $6.25, according to a report from Michigan-based StreetInsider.

One Seeking Alpha stock commentator said: "I have largely ignored Box Ships (TEU) since my coverage on August 16, 2012, in which I urged a Sell due to what I perceived as rampant dilution and insider transactions.

"I am returning to cover TEU due to inquiries from readers. However, I always recommend avoiding TEU due to management that appears to value insider dealing over stockholder returns. If the management cannot be trusted, it doesn't matter what the stock trades at."

Another Seeking Alpha commentator said: "Box Ships has really fallen on hard times lately, as has most of the shipping industry. In fact, since their IPO in 2011 shares of TEU have dived over 73 per cent. The company has had multiple share offerings since it's IPO, adding roughly 10 million shares of common stock and preferred stock. Also, in November Box Ships cut its dividend in half. This drove out many of those investors who were simply holding on to shares for the yield."

Source : HKSG.

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