This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Paragon's Box Ships IPO Sinks in Debut

NEW YORK ( TheStreet) -- The second containership company to begin selling shares to the public in New York this year sank below its offer price Thursday.

The company is called Box Ships (TEU - Get Report), it's based in Athens, and it was founded by the founder of the small dry-bulk shipping concern, Paragon Shipping (PRGN - Get Report), which is also listed on the New York Stock Exchange.

The man's name is Michael Bodouroglou. Like other shipping magnates -- George Economou of DryShips (DRYS - Get Report), Peter Georgiopoulos of Genco (GNK) and General Maritime (GMR) -- Bodouroglou has his hands in multiple categories of vessel, and in multiple shipping companies. In January, Diana Shipping (DSX - Get Report) -- founded by Simeon Palios -- also spun out a containership business, Diana Containerships (DCIX - Get Report).

On Thursday, Box Ships' stock finished the regular session at $11.05. The company priced 11 million shares at $12 a share.

Diana Containerships, meanwhile, finished at $13 on Thursday. It hasn't performed well since its debut, either, having started trading at $14 in January. (A different kind of transportation company had a better IPO experience on Thursday: Zipcar (ZIP) priced at $18, above its expected range, and then soared during first-day trading to $28.)

For the uninitiated, dry bulk ships haul raw materials such as iron ore or grain or coal. Containerships carry finished goods, stuff loaded high in their holds and on their decks inside those big steel boxes that can become semi trailers or railroad cars.

Thus, the containership business is closely linked to the health of the world's consumer economies, especially the U.S. and Europe. Dry bulk shipping is much more linked to the health of manufacturing and heavy industry.

One of the vicious ironies of the dry-bulk shipping business right now is that it hasn't been able to participate -- not since the end of last year, at least -- in an extraordinary boom in commodities driven largely by China's continued hunger for raw materials to feed its explosively growing economy. That's because of a heinous glut: there are simply too many dry bulk ships either on the water or expected for delivery this year for the amount of demand.

-- Written by Scott Eden in New York

>To contact the writer of this article, click here: Scott Eden.

>To follow the writer on Twitter, go to http://twitter.com/ScottEden.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DCIX $2.56 0.00%
DRYS $0.73 0.00%
DSX $6.21 0.00%
PRGN $0.75 0.00%
TEU $0.99 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs