Norwegian Cruise Line Holdings (NCLH)

The Federal Reserve effectively backstopped their bonds to keep the cruise lines going until a vaccine appeared. Then, Pfizer announced positive vaccine results today and NCLH popped 27%. But this has gone as far as it can go.

Carnival vs. Norwegian cruiselines He's not buying any cruiselines. Carnival just raised $6 billion, so they have the capital to ride this out, so it's better. But look at another sector or industry.

The airlines and luxury goods stocks are in the same basket as the cruiselines during the coronavirus outbreak. These stocks will be fine eventually. The emerging middle class wants to travel. Travel is strong. The chart hasn't moved in three years, so you got to time your entries and exits to capitalize.

The world’s third-largest cruise company by berth, in terms of number of total beds. Operates about 25 ships across 3 different brands. They plan to introduce 7 more ships through 2025, meaning they are going to increase capacity much faster than Royal or Carnival. Has a lot of runway when it comes to China, Europe, etc. because they are not as well exposed there. They have freestyle cruising which allows the older demographics to bring families on board. (Analysts’ price target is $65.)

Think of the cruise industry as a cyclical. When the economy is doing well, you can invest in the bottom of the cycle and ride the trade. Entry price is very critical here.