Jim Cramer: I Love Norwegian Cruise Lines
What would it take for you to book a cruise?
Would it be the go-ahead from Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, and one of the leading voices in the fight against the coronavirus pandemic? Would it be a tweet from President Donald Trump?
So far, despite concerns about the coronavirus and its impact on the cruise industry, the industry and the stocks have been able to weather the storm
In a note from last week, Credit Suisse said that the industry can weather the current storm brought on by the coronavirus pandemic.
"This is an unprecedented time for travel and leisure, with months-long suspensions of operations seen across the industry," the report said. "We believe that long-term, a consumer shift away from goods and toward experiences, along with pent-up demand due to quarantine, will be the driving forces of recovery."
"Industry checks, liquidity analysis, favorable customer demographics, and a compelling value proposition lead us to believe that cruise operators can weather the storm and that demand for the product will return," the report continued.
Royal Caribbean is up around 11% in the past five days, and is down over 60% in the past year. The stock currently trades around $48 a share.
Carnival is up around 10% in the past five days. It's down over 68% in the past year. It's trading around $16 a share.
Norwegian Cruise Lines is up around 22% in the past five days. it's down 71% in the past year. The stock currently trades around $15 a share.
In the video above, Jim Cramer said an OK from Dr. Fauci would see people back on cruises within the week.
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