Another Loss at NCL

[fshagan]

Good luck trying to get "NCL stock". NCL is owned by the owner of Star Cruises, Genting Hong Kong, trading on the Hong Kong exchange as GENHK SP. That symbol isn't available for me to purchase in my Fidelity account, but the symbol GTHKF is available as an OTC stock. It doesn't fit my current portfolio style, although I may make a place for it in another form.

 

What you are seeing in the news story is not the stock performance, but the performance of one of Genting's divisions. NCL's loss does not translate into a loss for the company as a whole, and may be an "accounting trick" or a real loss. Accounting is one of the most creative professions around.

 

The recent performance of GTHKF shows an improvement over past years:

 

Year over year, Genting Hong Kong Limited has been able to grow revenues from $376.8M to $388.9M. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 19.88% to 16.96%. This was a driver that led to a bottom line growth from a loss of $21.5M to a gain of $67.9M.

 

Buying foreign stocks, traded on a foreign exchange, can be difficult. The play for us would probably be to buy an ETF that has a position in Genting, such as iShares' "MSCI Malaysia Index Fund" (Symbol: EWM). Genting is 7% of the holdings of EWM.

[smeyer418]

Good luck trying to get "NCL stock". NCL is owned by the owner of Star Cruises, Genting Hong Kong, trading on the Hong Kong exchange as GENHK SP. That symbol isn't available for me to purchase in my Fidelity account, but the symbol GTHKF is available as an OTC stock. It doesn't fit my current portfolio style, although I may make a place for it in another form.

 

What you are seeing in the news story is not the stock performance, but the performance of one of Genting's divisions. NCL's loss does not translate into a loss for the company as a whole, and may be an "accounting trick" or a real loss. Accounting is one of the most creative professions around.

 

The recent performance of GTHKF shows an improvement over past years:

 

 

 

Buying foreign stocks, traded on a foreign exchange, can be difficult. The play for us would probably be to buy an ETF that has a position in Genting, such as iShares' "MSCI Malaysia Index Fund" (Symbol: EWM). Genting is 7% of the holdings of EWM.

 

NCL is owned by a holding company of which Genting and Apollo are the sole share holders. Buying Genting stock technically doesn't make you an owner of NCL.

 

The amounts and percentages of ordinary shares beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Under these rules, more than one person may be deemed a beneficial owner of the same securities and a person may be deemed a beneficial owner of securities as to which he has no economic interest. Except as otherwise indicated in the footnotes below, each of the beneficial owners has, to our knowledge, sole voting and investment power with respect to the indicated ordinary shares.

 

 

 

Number and

Percent of Shares

Beneficially Owned

Number Percent

 

Genting HK(1)

10,500,000 50.0 %

 

Apollo(2)

7,875,000 37.5 %

 

TPG(3)

2,625,000 12.5 %

 

Tan Sri Lim Kok Thay(1)(4)

— *

 

David Chua Ming Huat(1)(4)

— *

 

Marc J. Rowan(2)(5)

— *

 

Steve Martinez(2)(5)

— *

 

Adam Aron(2)(5)

— *

 

Karl Peterson(3)(6)

— *

 

Walter L. Revell

— *

 

All Directors and executive officers as a group (12 persons)

— *

 

 

* less than 1%

(1) Genting HK owns our ordinary shares indirectly through Star NCLC Holdings Ltd., a Bermuda wholly-owned subsidiary. The address of each of Genting HK and Star NCLC Holdings Ltd. is c/o Suite 1501, Ocean Centre, 5 Canton Road, Tasimohatsui, Kowloon, Hong Kong SAR. As of March 31, 2010, the principal shareholders of Genting HK are:

 

 

 

Percentage Ownership

in Genting HK

 

GHL(a)

47.42 %

 

GENM(b)

19.30 %

 

 

(a) GHL is a company incorporated in the Isle of Man acting as trustee of the Golden Hope Unit Trust, a private unit trust which is held directly and indirectly by GZ Trust Corporation as trustee of a discretionary trust established for the benefit of certain members of the Lim Family.

(b) GENM is a Malaysian company listed on the Main Market of Bursa Malaysia Securities Berhad in which the Lim Family has a substantial indirect beneficial interest.

 

As a result, an aggregate of 66.72% of Genting HK’s outstanding shares is owned by GENM and GHL as trustee of the Golden Hope Unit Trust, directly or indirectly, as of May 13, 2010.

 

 

(2)

 

Represents the ownership interest in Norwegian indirectly attributable to Apollo through Apollo’s affiliation with NCL Investment, Ltd. and NCL Investment II, Ltd. Apollo has the right to vote the ordinary shares held by the affiliates of Genting HK and TPG, subject to certain exceptions. See “Certain Relationships and Related Party Transactions—The Shareholders’ Agreement.” The address of each of Apollo, NCL Investment, Ltd. and NCL Investment II, Ltd. is c/o Apollo Management, L.P., 9 West 57th Street, New York, New York 10019.

[wg6530]

Good luck trying to get "NCL stock". NCL is owned by the owner of Star Cruises, Genting Hong Kong, trading on the Hong Kong exchange as GENHK SP. That symbol isn't available for me to purchase in my Fidelity account, but the symbol GTHKF is available as an OTC stock. It doesn't fit my current portfolio style...Snip....

 

 

Buying foreign stocks, traded on a foreign exchange, can be difficult. The play for us would probably be to buy an ETF that has a position in Genting, such as iShares' "MSCI Malaysia Index Fund" (Symbol: EWM). Genting is 7% of the holdings of EWM.

 

Have you heard of the possible IPO? IIRC, NCL filed an S-1 last October.

[ShipShape4me]

What exactly are you agreeing with swedishweave about? Accusing this poster of multiple names? Even the 5000+ at one point had a low # of posts. I respect a very large percentage of the long time cruisers and CC loyals, most (including those who have posted here) are extremely helpful and knowledgeable. I also can understand where the regulars would be skeptical by the wording of the original post. It does come across as some posts do of "see the bad I found out". But the OP is certainly not a "one post wonder".

 

I have no idea whether this poster is for real or not, but neither do the posters with numerous posts behind them. I have conversed with the OP on other threads and I do not get the feeling that in those other threads he/she is bashing NCL or looking to cause issue IMO.

 

IMO also if you do not want to discuss this topic or if you feel this person is not for real. Then don’t post. If you believe this to be a critcal post, you are only encouraging those posters whos only purpose is the try and trash the company. If you feel this person is bashing NCL on purpose and don’t want newbies to take it seriously, then you can write something similar to the accountants point of view that “these numbers don’t tell the whole story.” I think the flames of accusations and name calling is not extremely productive.

 

 

Thank-you!!!!

I have reviewed my posting and I fail to see the what is so upsetting about asking for other people's thoughts and comments.

oh well... Life goes on and I will continue to respectfully ask questions.

Thanks again to those of you that provided a nice response.

[Got2Cruise]

I enjoyed the topic. Something different than the usual, "what size are the pork chops in the restaurants"? threads.:D Also, some cruiselines do have public offerings of their stock, and if you own the stock you get a discount. I have read posters purchasing stock for this very purpose.

Thank-you!!!!

I have reviewed my posting and I fail to see the what is so upsetting about asking for other people's thoughts and comments.

oh well... Life goes on and I will continue to respectfully ask questions.

Thanks again to those of you that provided a nice response.