NCLH Stock Analysis

Is NCLH Going Bankrupt?

NCLH Stock Analysis: Things have looked pretty grim for the cruise lines for a while now.

And a lot of news has been circulating about Norwegian Cruise Lines possibly going bankrupt.

So I would like to clarify what the ‘talking heads’ mean.

Now by no means do I think NCLH is out of the woods just yet, but I would like to walk you through what I’m looking at.

I also want to share why I feel comfortable with my position in NCLH.

NCLH Propositions

So right now Norwegian Cruise Line is raising capital and here’s the basic breakdown of what they’re proposing:

• They’re are pledging two islands as part of their plan to raise as much as $2 Billion to survive the shutdown.
• $600 Million in junk bonds that could be priced as soon as today.
• $650 Million in exchangeable notes
• $350 Million public offering (shares you and I can buy)
• $400 Million invest by an affiliate of a private equity firm

As a technical trader, I rely on technical indicators to make my trading decisions. But to help discuss what’s going on with NCLH and my mindset with this trade, I want to spend some…