Is Royal Caribbean Stock the Only Cruise Line Stock Worth Buying?
The waters are rough for the cruising industry, but Royal Caribbean (NYSE: RCL) is having a pretty good week if we look beyond the near-term stock price fluctuations. The country's second-largest cruise line operator increased its liquidity by roughly $1 billion on Tuesday, after completing stock and debt offerings.
Pricing 8.333 million shares at $60 will be dilutive. The same can be said about the $500 million in senior convertible notes. The stock did take a 13% hit on Tuesday as a result of the financing moves.
But now that the market has had some time to reflect on Royal Caribbean's coffer-padding measures, it's starting to come around. A pair of analysts (not any of the offering's book-running managers) are now offering up encouraging notes on Royal Caribbean stock. Calmer seas could be on the horizon.
Source Fool.com
