RE: Cruises are going to be TOP Performers02 Apr 2020 15:32
Gower, I don't disagree. It will be ages, at least a year, however they now have more than enough money to survive, and are discounted 85% from start of the year. That’s almost certainly the biggest hit of any company, even BA are only (!!) down 60%. Thinking long term if they get to half what they were in 3 years that will be a 300% increase, and it looks unlikely they will go bust.
A cruise liner at sea is not an unusual thing. No different to airlines grounding planes. The reality is CCL are not responsible for the virus, or the reaction of ports. As long as they look after their passengers, feed them well they will from a customer perspective be forgiven. However, balancing Uber-caution vs healthy discounts will be interesting. Lots of brits have been stranded overseas with no support at all, but won’t stop them holidaying.
Please remember these are 84% down since start of the year. A lot of panic sellers for sure. Can also move 200 points in a day (which would previously have been 5%). With a small amount of good news (corona wise) these could go back to 1200p where they were a week ago quite quickly.
If the profits, growth and assets have not been wholly misrepresented and they are a going concern, they should be able to become leaner and more profitable, all we have had is bad news. We don’t know any of the facts as to whether Shetty was a victim (unlikely), what role the banks played, do you get bonuses for arranging big loans? The question is whether creditors have faith in the reformed leadership, whether any debt can be written off, and whether current economic environment (corona) is a final nail. If profits head towards £500m as they were, then they will be able to service debt. If this were a better known blue chip (Tesco etc) it would be all over the news. Bet 99.9% of public have never heard of nmc. Interestingly Krupa, II’s generally and Clement have been very quiet.
I agree. The question is whether nmc are liable or not. If shares are the only collateral then nmc are only exposed to the extent of the shares pledged. Who knows. Greater evils in the world. I have s toilet roll I can sell for 100k to cover my losses.
Just thinking if the security for the loans were director owned shares that had already been pledged, then more fool the lenders? If shares have been pledged more than once, then the lenders are out of picket not remaining shareholders. Failure of Due diligence on lenders might be a pill they have to swallow? Green shoot.
Ok. On a positive, Fin have gone insolvent. The fact that the extent of nmc liability is so much higher suggests that they are doing everything to save the company, which includes shareholder value. We don’t really know enough detail, but it’s definitely an option that the debts or some of them could be written off, and lenders will follow the money.