{"id":19944,"date":"2020-05-31T13:30:08","date_gmt":"2020-05-31T17:30:08","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=19944"},"modified":"2020-05-31T14:32:04","modified_gmt":"2020-05-31T18:32:04","slug":"why-investing-in-cruise-ship-companies-can-be-lucrative","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-cruise-ship-companies-can-be-lucrative\/","title":{"rendered":"Why Investing in cruise ship companies can be lucrative"},"content":{"rendered":"\n

Dear PGM Capital<\/strong> Blog readers,<\/p>\n\n\n\n

In this weekend\u2019s blog article, we want to take the opportunity to discuss with you, why investing in the world’s biggest cruise ship companies, – at current share price level – can be lucrative.<\/p>\n\n\n\n

INTRODUCTION:<\/h3>\n\n\n\n

The cruise industry is the fastest-growing category in the leisure travel market. Since 1980, the industry has experienced an average annual passenger growth rate of approximately 7% per annum.<\/p>\n\n\n\n

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The\u00a0cruise line\u00a0industry is estimated at a value of\u00a0US$45.6 billion with around 26 million passengers annually.<\/p>\n\n\n\n

The three major cruise lines are:<\/p>\n\n\n\n

Carnival Corporation:<\/h5>\n\n\n\n

Carnival\u00a0Corporation & Plc (NYSE: CCL), operates as a leisure travel company. <\/p>\n\n\n\n

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The company’s ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names.<\/p>\n\n\n\n

As of January 28, 2020, the company operated 105 ships with 254,000 lower berths. Carnival Corporation & Plc was incorporated in 1972 and is headquartered in Miami, Florida.<\/p>\n\n\n\n

Royal Caribbean International:<\/h5>\n\n\n\n

Royal Caribbean Cruises Ltd. (NYSE: RCL) operates as a cruise company. <\/p>\n\n\n\n

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The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands.<\/p>\n\n\n\n

As of December 31, 2019, the company operated 61 ships and had 17 ships on order. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.<\/p>\n\n\n\n

Norwegian Cruise Line Holding Ltd:<\/h5>\n\n\n\n

Norwegian Cruise Line Holdings Ltd., (NYSE: NCLH) together with its subsidiaries, operates as a cruise company in the North America, Europe, the Asia-Pacific, and internationally.<\/p>\n\n\n\n

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The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands.<\/p>\n\n\n\n

As of February 20, 2020, the company had 28 ships. The company was founded in 1966 and is headquartered in Miami, Florida.<\/p>\n\n\n\n

WHY INVESTING IN CRUISE SHIPS COMPANIES:<\/h3>\n\n\n\n

Airlines are resuming their international schedules; theme parks have begun making concrete plans to reopen, casinos and hotels have done the same, retailers that have thrown open their doors as society heads haltingly toward a new normal with face masks, limited capacities, and social distancing guidelines in place.<\/p>\n\n\n\n

The three major cruise lines mentioned above, plan to take the same path and get their ships back out to sea. Carnival has even listed August 1 as the day it plans to restart operations, while Royal Caribbean has hinted at a similar timetable.<\/p>\n\n\n\n

Despite two recessions over the last 25 years, the cruise business has shown unabated growth in passengers globally, as can be seen from below chart.<\/p>\n\n\n\n

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PGM CAPITAL ANALYSIS & COMMENTS:<\/h3>\n\n\n\n

The major reasons why investment in cruise ship companies may result in a positive investment return are:<\/p>\n\n\n\n

Cruising continuous growing popularity particularly in Asia<\/strong>: <\/h5>\n\n\n\n

In 2015, only one million cruise passengers were from China (a similar number to Australia which has a far smaller population). However, by 2020, the Chinese government expects 4.5 million cruise passengers from China per year.<\/p>\n\n\n\n

Committed growth in new passenger capacity<\/strong>: <\/h5>\n\n\n\n

To meet the upcoming demand, over the next 5 years, 139,000 berths (from 44 new ships) have been commissioned by cruising companies to be built, which is a 29 percent increase in passenger carrying capacity globally.<\/p>\n\n\n\n

Baby boomers\u2019 spending power<\/strong>: <\/h5>\n\n\n\n

As can be seen from below chart, cruising has demographic and spending power on its side. <\/p>\n\n\n\n

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Baby boomers, – the wealthiest proportion of the global population – are a key customer group for cruise ship companies. With more baby boomers heading into retirement over the next decade, there will be greater demand for cruises. <\/p>\n\n\n\n

Based on the above information and the very attractive share price, – due to the COVID-19 – we initiated our coverage for this sector with a STRONG BUY<\/strong>\u00a0rating for which our preference goes toward the Carnival Corporation.<\/p>\n\n\n\n

Disclosure:<\/h4>\n\n\n\n

We own shares of Carnival Corporation in our personal portfolio.<\/p>\n\n\n\n

PGM Capital is at your service as your, Professional, Trustworthy and Dedicated, Financial Advisor and Asset Management.<\/p>\n\n\n\n

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Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past Performance Is Not Indicative Of Future Results.<\/p>\n\n\n\n

Yours sincerely,<\/p>\n\n\n\n

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Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"

Dear PGM Capital Blog readers, In this weekend\u2019s blog article, we want to take the opportunity to discuss with you, why investing in the world’s biggest cruise ship companies, – at current share price level – can be lucrative. INTRODUCTION: The cruise industry is the fastest-growing category in the leisure travel market. Since 1980, the industry has experienced an average annual passenger growth rate of[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":19955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-19944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/19944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=19944"}],"version-history":[{"count":26,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/19944\/revisions"}],"predecessor-version":[{"id":19980,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/19944\/revisions\/19980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/19955"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=19944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=19944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=19944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}