The 1 Thing You Should Know About Cruise Line Stocks Before You Buy
The ocean can play tricks on you. Sometimes if you spend too much time on a ship, you'll start seeing things like mermaids, sea serpents, and -- yes -- even stock charts that aren't what they appear to be. Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) have done a great job of staying afloat financially despite not generating any kind of meaningful revenue for more than 13 months.
It's not all good news, of course. They are burning through gobs of cash. Cruise ships aren't returning to profitable sailings anytime soon, and the fleets themselves have been streamlined. It will take time and good deal of marketing spend to sway anyone outside of hardcore cruise buffs to get on a crowded ship in the next couple of years. The near-term prospects will be challenging, but as long as you survive, you have a chance. Carnival, Royal Caribbean, and Norwegian Cruise Line have that chance, but it came at a dear price.
Image source: Getty Images.
Source Fool.com