NCLH Stock

[JMARINER]

1 hour ago, JanR said:

So right now, NCLH has a market cap of $1.755 Billion.

 

As of the last quarterly report, it had $6 Billion more in assets than liabilities.  At just over $8 a share, someone tell me why this isn't a steal...even if NCLH has to sell off all of its assets?

Two things to consider:

 

1. They have $7 billion in debt and $255 million cash on hand. How are they going to pay the mortgage? When do you think that cruise revenues are going to get back to pre-covid19 values?  In 6 months, 1 year, 5 years, ever?

 

2. Yes they $16 billion is assets but those are mostly from the value of their ships. Who would buy them? I  think that there are going to be a lot of ships on the market by next year.

 

Personally  I am going to wait for some time before I repurchase NCLH again.

 

J

[Pcardad]

They have closer to $2Billion cash on hand - they drew down a pair of credit lines earlier this week.

 

I've booked over $500K in the last month...people still buying cruises, just buying further out.

Edited March 19, 2020 by Pcardad

[RJ2002]

Has anyone seen any details of what is included, if anything, for the cruise industry in the proposed $1T stimulus package?  I know the package is still subject to negotiation, but the initial headlines didn't seem to highlight much about assistance for the cruise lines.

[mrlevin]

As cruise lines are foreign companies doubt there would be any direct aid.  One thing government could do is a temporary relaxation of PVSA to allow foreign flagged ships to sail to US ports without a foreign port.  This would allow them to use ships for east coast and west coast sailings once USA is back in business.  A small thing but I bet there would be plenty of demand for USA cruises only.

 

Marc

[UUNetBill]

19 hours ago, Pcardad said:

The only people who will make any money are the lawyers...

Yep, they didn't waste a bit of time, did they?

 

I think it'll be hard for them to prove that anyone was 'spreading lies' because of the multitude of different stories that were disseminated on all of the different news sources.  Hell, we're what, like 4 months into this thing and there are STILL conflicting stories out there every day...

[Gray Eagle02]

https://www.fool.com/investing/2020/03/19/its-still-not-safe-to-board-cruise-stocks-again.aspx

[slidebite]

22 hours ago, mrlevin said:

As cruise lines are foreign companies doubt there would be any direct aid.  One thing government could do is a temporary relaxation of PVSA to allow foreign flagged ships to sail to US ports without a foreign port.  This would allow them to use ships for east coast and west coast sailings once USA is back in business.  A small thing but I bet there would be plenty of demand for USA cruises only.

 

Marc

They could do it now and get rid of flags of convenience. There would probably be more sympathy for the multi billion dollar industry if they weren't flagging their vessels in small nations to skirt laws.

 

On 3/19/2020 at 4:47 PM, JMARINER said:

Two things to consider:

 

1. They have $7 billion in debt and $255 million cash on hand. How are they going to pay the mortgage? When do you think that cruise revenues are going to get back to pre-covid19 values?  In 6 months, 1 year, 5 years, ever?

 

2. Yes they $16 billion is assets but those are mostly from the value of their ships. Who would buy them? I  think that there are going to be a lot of ships on the market by next year.

 

Personally  I am going to wait for some time before I repurchase NCLH again.

 

J

1000% agree. Sears still has "assets" but probably not a great investment opportunity right now, even if their stock was worth exponentially more not that long ago. That said, I have hope that the cruise companies have a brighter future than Sears, but the point is similar.

[mrlevin]

21 minutes ago, slidebite said:

They could do it now and get rid of flags of convenience. There would probably be more sympathy for the multi billion dollar industry if they weren't flagging their vessels in small nations to skirt laws.

 

 

If they got rid of "flags of convenience" they would need to follow US labor laws; no way with that work.  There would need to be a limited short term exemption.

 

Marc

[slidebite]

Oh that would be the easiest way, no doubt! However, Norwegian does it for Hawaii cruises with the Pride of America. It can be done. It's a matter of expenses/profits. It's far, far more profitable to not do it, and flag in Panama/Bahamas or wherever for sure.

Edited March 21, 2020 by slidebite

[DaisyUK]

NCLH stock up today..