Whos willing to take a bet on NCLH – Norwegian Cruise Lines?
Their stock is at a historical low ($25/share) when it usually costs around $55/60.
The problem is the COVID and “No Sail” orders.
Basically, the stock will continue to be low until we get signs of the travel restriction being lifted.
Q1: Can NCLH hold on long enough without going under? With no foreseen end.
Q2: Are you willing to risk throwing away that $$$ for a chance at a 2x or 3x return?
Q3: Are you willing to let that money sit for 4-5 years before seeing profit?
My head is saying yes, but my common sense is saying hold. I need help!
*I know absolutely nothing about stocks, so don’t take my advice on anything in regards to investing. Im just writing out my thoughts on NCLH and deciding if I should purchase now or hold my position.
COMMENT 1: “Id say it will be a low chance it will recover fully. People are no longer wanting to be crammed into confined spaces where sickness spreads. For a punt it may work, but from a technical view its not likely to see big returns”
RESPONSE 1: “I agree. I still think the number will jump back to at least $40 range when the no sail orders are lifted. With all the eager buyers and operations green light I’m sure people will eat up the stock while they can driving the price upwards.
The company has too many capital assets and inventory to not be successful. As soon as the no sail orders are lifted, it should immediately jump.
There’s no way it stays at $25. It’s really profit or bust in 5 years. All depends if they can stay afloat (no pun intended)”
COMMENT 2: “NCL will recover but not pre covid for years… most new bookings are not bookings at all… just rebooking from previous cancelations. Expect about 5 years to see a real profit.
Also… I believe cruising will start in other countries before the USA… CDC guidelines only operate in the USA… but the cruiselines can depart from other ports like Europe and start generating profits”
RESPONSE 2: “Yikes if the reports are showing rebookings, the return data could be skewed. I would think they get written off as a loss at the end of the year. Something else to look out for “