Hey guys, Coach Julien here. In this video, I’m going to talk to you about a stock that I’m looking at. The stock price is not reflecting the financial performance. There’s a clash there, so cover your ass statement. I’m not telling you to buy it or sell it. Buy it at your own risk. I’m just showing you what I’m looking at and what appeals to me about the situation with this stock. If you like it, thumbs up.
So, the stock I’m looking at today is called Norwegian Cruise Line Holdings. The reason I’m looking at it is because the stock price hasn’t been aligned with the financial performance. The purple line is the stock price, the orange line is the revenues, the blue line is cash flow from operations, and the green line is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Before the lockdown, things were going nicely. The stock price had a ceiling at about 60 and a floor at about 40, treading along nicely. The financial performance of this company has been good. When COVID happened, you could see the stock price going up while the financials were going down, creating a reverse correlation.
After about mid-2021, the stock price started going down, bottoming out at around 12. But look at the financial performance. Things are picking up since mid-2021. The trailing 12 months show a very positive trend. For me, this is an opportunity to buy because eventually, unless there’s another COVID scenario, the stock price is going to catch up to the financial performance. It always does.
As long as this positive financial performance trend continues, the stock price is going to rise. A lot of attention lately has been on tech stocks, but as these tech prices become expensive, investors will start looking at opportunities like this. Institutional investors pouring money into this will drive the stock price up.
There you have it. I hope you found it useful. I just wanted to share that with you. Maybe it’ll help you analyze some other stocks. If you like this video, please give it a thumbs up and subscribe to my channel because I got more stuff coming your way. Take care, and we’ll see you real soon. Thank you.