Norwegian Cruise Lines, Royal Caribbean, and Carnival All Made Big Moves Today
Of all the high-risk, high-upside opportunities in the market today, none are perhaps as interesting as cruise line stocks Norwegian Cruise Lines (NYSE: NCLH), Royal Caribbean (NYSE: RCL), and Carnival (NYSE: CCL). Amid the coronavirus pandemic, all three cruise companies have ceased cruising and are burning cash with no end in sight.
On the other hand, all have managed to raise money from the public debt and equity markets in order to tide them over for the intermediate term -- albeit expensively, with significant shareholder dilution. Also encouraging, recent data points show strong consumer demand for cruising is intact, whenever these companies are allowed to set sail again.
More information came to light today as Norwegian Cruise Lines gave an investor update, Royal Caribbean raised new debt, and Carnival announced further cost-cutting measures.
Source Fool.com
