What's going on with NCLH stock prices?

[GeorgesGal]

It's been falling steadily since a week or more ago.  Is this shareholder dissatisfaction over NCL not offering cruises from/to new Caribbean home ports as two other cruise lines have done in the last week?

[pinotlover]

Or , a lot of insider trading to take advantage of the high prices?

 

Most companies can’t bleed cash indefinitely, with no recovery plan, without taking a stock hit. 
 

Many of those insiders are sitting on a lot of stock they’d probably like to convert to cash.

[GeorgesGal]

Thanks, Pinot, I'd thought this could be a possibility as well.  I'd thought about doing it as well, but didn't want to take the 28% short term gain tax.  Only held NCLH since around Sept 2020.

[Dwtlion]

2 recent financial news events that negatively impacted share price. Plus the continued virus implications.

• Norwegian Cruise Line Holdings  has commenced public offering of over 47 million shares.

NCL had a large senior notes offering of over 1/2 $billion.

Edited March 23, 2021 by Dwtlion

[lj77346]

Over the past 2 years NCL has offered more than 100 million shares which has diluted the value of the stock. Currently its earnings per share is -$16.80 and even if cruises commenced later this year, it is unlikely that the company will reach profitability prior to 2023. Therefore, declines in the price of NCL stock should not be surprising. It's likely that many of the cruises booked this year and into 2022 are using future cruise credits, which are not new revenue for the company. NCL will next report earnings on May 12, 2021 which without cruises will be an extension of their string of negative earnings. Also as a previous poster noted their level of debt is high.

[PaulMCO]

27 minutes ago, lj77346 said:

Over the past 2 years NCL has offered more than 100 million shares which has diluted the value of the stock. Currently its earnings per share is -$16.80 and even if cruises commenced later this year, it is unlikely that the company will reach profitability prior to 2023. Therefore, declines in the price of NCL stock should not be surprising. It's likely that many of the cruises booked this year and into 2022 are using future cruise credits, which are not new revenue for the company. NCL will next report earnings on May 12, 2021 which without cruises will be an extension of their string of negative earnings. Also as a previous poster noted their level of debt is high.

Interesting to note that a number of senior executives unloaded their shares right before the public offering. 

• President and CEO Frank Delo Rio sold 80,821 shares at an average price of $29.85 each for a total of $2,412,506.85.
• Harry Sommer, president of the Norwegian brand, disposed of 18,854 company shares at $29.85 for a total of $562,791.90.
• Robert Binder, president and CEO of Oceania, sold 21,278 shares at $29.85 each for $635,148.30.
• Jason Montague, president and CEO of Regent Seven Seas Cruises, sold 18,854 shares at $29.85 each for $562,791.90

[RetiredLifer]

25 minutes ago, PaulMCO said:

Interesting to note that a number of senior executives unloaded their shares right before the public offering. 

• President and CEO Frank Delo Rio sold 80,821 shares at an average price of $29.85 each for a total of $2,412,506.85.
• Harry Sommer, president of the Norwegian brand, disposed of 18,854 company shares at $29.85 for a total of $562,791.90.
• Robert Binder, president and CEO of Oceania, sold 21,278 shares at $29.85 each for $635,148.30.
• Jason Montague, president and CEO of Regent Seven Seas Cruises, sold 18,854 shares at $29.85 each for $562,791.90

 

These were sales done on behalf of the officers listed.  This is what I posted on March 4th in response to someone else bringing up these sales:
“I checked the Form 4's filed with the SEC and all shares of all listed show the shares disposed had the notation "Represents shares withheld by Norwegian Cruise Line Holdings Ltd. ("NCLH") to satisfy tax withholding obligations in connection with the vesting of 1/3rd of (.....). restricted stock units granted to the reporting person on March 1, 2018."

[PaulMCO]

38 minutes ago, RetiredLifer said:

 

These were sales done on behalf of the officers listed.  This is what I posted on March 4th in response to someone else bringing up these sales:
“I checked the Form 4's filed with the SEC and all shares of all listed show the shares disposed had the notation "Represents shares withheld by Norwegian Cruise Line Holdings Ltd. ("NCLH") to satisfy tax withholding obligations in connection with the vesting of 1/3rd of (.....). restricted stock units granted to the reporting person on March 1, 2018."

Still cleverly timed that the offering was a few days later that drove the stock lower.

[RetiredLifer]

I just checked and I could find no significant NCLH stock specific news since the Vista announcement and extension of the cruising pause which were announced a week ago.

 

I just checked and I could find no recent form 4’s indicating insider selling.

 

Cruise and airline sector stocks have been rising and falling daily in response to new  lockdowns, COVID -19 vaccine news and the possible reopening of cruising.  Some days the news is hopeful, sometimes not.  Today the news was not hopeful because of the AstraZeneca vaccine issue and new lockdowns.  The stocks of the cruising companies were down today across the board. 

 

BZ: Shares of stocks in reopening sectors such as travel, cruise and resorts are trading lower, potentially amid renewed lockdown measures in Europe. Uncertainty over AstraZeneca's COVID-19 vaccine data has also weighed on the sector.

[RetiredLifer]

1 hour ago, PaulMCO said:

Still cleverly timed that the offering was a few days later that drove the stock lower.

Conversion price was 29.85 on March third. That date determined three years before.The price climbed to 34.73. The offering was priced at 30. The stock fell to just under 27 immediately after the offering and two days later was back into 29’s and traded in the 28 to 32 dollar range until today. Sorry, don’t see the timing cleverness.

[CAG]

It could possibly be due to the fact that NCL announced that three of their ships would not sail until end of October/November.

[TrulyBlonde]

CDC reiterated today, apparently on CNBC that no cruising until November 1st. They are trying to bankrupt the industry 😞

[Vertygo]

2 hours ago, TrulyBlonde said:

CDC reiterated today, apparently on CNBC that no cruising until November 1st. They are trying to bankrupt the industry 😞

 

I'm certain their primary intent is protecting public health, not bankrupting a particular industry sector. Unfortunately bankruptcy may be a result for some cruise lines. I remember my TA's response of "we'd really be in trouble if that happened" when I moved a 4/21 cruise back in June '20 because I was certain we'd still be impacted by COVID.

[TrulyBlonde]

22 minutes ago, Vertygo said:

 

I'm certain their primary intent is protecting public health, not bankrupting a particular industry sector. Unfortunately bankruptcy may be a result for some cruise lines. I remember my TA's response of "we'd really be in trouble if that happened" when I moved a 4/21 cruise back in June '20 because I was certain we'd still be impacted by COVID.

Yes, you are correct. However, this cannot continue forever and bankruptcy may be the unfortunate outcome. How sad.

[Tranquility Base]

3 hours ago, TrulyBlonde said:

CDC reiterated today, apparently on CNBC that no cruising until November 1st. They are trying to bankrupt the industry 😞

What itineraries in particular did you envisage operating from local ports if the CSO was lifted in July ?  

[TrulyBlonde]

1 hour ago, Tranquility Base said:

What itineraries in particular did you envisage operating from local ports if the CSO was lifted in July ?  

Who said I envisioned any local ports opened in July?  

[Tranquility Base]

46 minutes ago, TrulyBlonde said:

Who said I envisioned any local ports opened in July?  

That is what the cruise lines asked the CDC to allow.

So do you agree with the CDC's decision to decline their request ?

[DeeniEncinitas]

9 hours ago, TrulyBlonde said:

CDC reiterated today, apparently on CNBC that no cruising until November 1st. They are trying to bankrupt the industry 😞

🌺Your right on!! HAL board saying the same thing today.  And I came  over here to see what O was saying.

Denise😊

[golfguyhhi]

If the CDC hasn't banned flights in airplanes, then it seems they are focused on cruising in a strange way.

If the CDC did want to help cruising, even in the smallest way, they could simply say "All crew members must be verifiably vaccinated against COVID by one of the accepted and approved vaccines before being allowed to return to work on board.  All passengers must be verifiably vaccinated against COVID by one of the accepted and approved vaccines prior to boarding."

The CDC could also identify which method of "vaccination passport" would be acceptable as proof of vaccination.

This guidance would enable cruise lines to make every effort to get their crews vaccinated - even going so far as to work with governments to arrange to obtain vaccine on their own to administer injections.

[Hlitner]

38 minutes ago, golfguyhhi said:

If the CDC hasn't banned flights in airplanes, then it seems they are focused on cruising in a strange way.

If the CDC did want to help cruising, even in the smallest way, they could simply say "All crew members must be verifiably vaccinated against COVID by one of the accepted and approved vaccines before being allowed to return to work on board.  All passengers must be verifiably vaccinated against COVID by one of the accepted and approved vaccines prior to boarding."

The CDC could also identify which method of "vaccination passport" would be acceptable as proof of vaccination.

This guidance would enable cruise lines to make every effort to get their crews vaccinated - even going so far as to work with governments to arrange to obtain vaccine on their own to administer injections.

Perhaps you need to ask the question, "why would the CDC want to help the cruise industry?"  What is their incentive to help the cruise industry?  There are likely those in the CDC who would sleep better at night if the cruise industry were simply a paragraph in the history books, ie. "at one time there use to be a cruise industry in the USA."  

 

Hank

[pinotlover]

Fauci has always been very clear: He doesn’t consider economic consequences in any of his decisions. Period.

 

Those considerations are the job of someone else. If and when that someone is napping bad things economically will happen. 

[njhorseman]

1 hour ago, Hlitner said:

Perhaps you need to ask the question, "why would the CDC want to help the cruise industry?"  What is their incentive to help the cruise industry?  There are likely those in the CDC who would sleep better at night if the cruise industry were simply a paragraph in the history books, ie. "at one time there use to be a cruise industry in the USA."  

 

Hank

Everyone in the US government should be really interested in supporting an industry that doesn't pay any federal income taxes, employs few US citizens on its ships and doesn't have to comply with US safety regulations that are more stringent than SOLAS. 😲

 

The cruise industry chose its business model and it may die or at least be substantially decimated because of that choice.

[LHT28]

41 minutes ago, njhorseman said:

Everyone in the US government should be really interested in supporting an industry that doesn't pay any federal income taxes, employs few US citizens on its ships and doesn't have to comply with US safety regulations that are more stringent than SOLAS. 😲

 

The US government supports many companies that do not pay Federal tax  so what is the difference

 

I guess the US  Government does not care about the  thousands of US citizens that the cruise industry employs either directly or indirectly  🙄

 

Just think of all those  porters at the dock  now missing out on hundreds of $$ a day in tips  ...how will they get back to their Foreign Country at night 😉

 

 

[Tranquility Base]

3 hours ago, golfguyhhi said:

If the CDC did want to help cruising, even in the smallest way, they could simply say "All crew members must be verifiably vaccinated against COVID by one of the accepted and approved vaccines before being allowed to return to work on board. 

Approved by whom ?

[njhorseman]

5 minutes ago, LHT28 said:

The US government supports many companies that do not pay Federal tax  so what is the difference

 

I guess the US  Government does not care about the  thousands of US citizens that the cruise industry employs either directly or indirectly  🙄

 

Just think of all those  porters at the dock  now missing out on hundreds of $$ a day in tips  ...how will they get back to their Foreign Country at night 😉

 

 

Please name the companies that the federal government has assisted during the pandemic that are not incorporated in the US primarily for the purpose of circumventing the tax code. The answer is none, nor should there be any. The provisions of the CARES Act were written to exclude them. Why should my tax dollars go to support a company that hides behind a curtain of foreign incorporation in order to evade taxes?

It looks like you've swallowed the CLIA bait . Even if their guesstimates of the industry's contribution to the economy are correct the suffering of the cruise industry is a minor skin rash in the infection of the pandemic .Millions of employees...US citizens... in other industries have lost their jobs and huge numbers of small businesses have folded . The cruise industry only employs a few thousand Americans. Why should an industry that has built its business model on raking in millions from Americans while returning little get a break others haven't?