Long Position on NCLH @ $12.00 on 4/9/2020 (Momentum)

Norwegian Cruise Line Holdings Ltd. (NCLH), together with its subsidiaries, operates as a cruise company in the North America, Europe, the Asia-Pacific, and internationally.

The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers cruise itineraries ranging from a few days to 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, India and the rest of Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, South America, the Panama Canal, the Caribbean, and Harvest Caye.

As of February 20, 2020, the company had 28 ships with approximately 59,150 berths. It distributes its products through retail/travel advisor, international travel advisor, and onboard cruise sales channels, as well as meetings, incentives, and charters. 

Norwegian Cruise Line reported Quarter December 2019 earnings of $0.73 per share on revenue of $1.5 billion. The consensus earnings estimate was $0.70 per share on revenue of $1.4 billion. Revenue grew 7.2% on a year-over-year basis.

The company said it expects first quarter earnings of approximately $0.48 per share and 2020 earnings of $5.40 to $5.60 per share. The current consensus earnings estimate is $0.60 per share for the quarter ending March 31, 2020 and $5.49 per share for the year ending December 31, 2020.

Norwegian Cruise Line is expected to sell shares to shore up it's balance sheet. Any such movement, should cause the stock to move higher.

Entry point: $12.00

52-week trade range: $7.03 - $59.78

Stop/Loss: $11.30

Target Price: $13.20

Updates

4/9/2020 11:11:54 AM

NCLH closed at $14.00

Position closed on 4/9/2020 at price of $14.00 with a 16.67% gain in 0 days.

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