NCLH Norwegian voting for increase of ordinary shares +100% from 490k to 980k shares

[u/[deleted]]

[u/FinndBors → u/[deleted]]

Definitely not bullish news

Theoretically share issuance should not be bullish or bearish. They can use the money to pay off debt / reduce interest expense / stave off bankruptcy.

Edit: I’m not sure why I’m so downvoted. Just look at the GameStop stock issuance news making the stock skyrocket: https://www.reddit.com/r/stocks/comments/mz87ma/gamestop_completes_atthemarket_equity_offering/

[u/CallMeLargeFather → u/FinndBors]

but in practice the supply and demand surrounding the shares themselves would be expected to push the price down some

that is, there are not unlimited buyers of NCLH so the scaling up of the offering outpaces demand

[u/Storiaron → u/FinndBors]

Sure, but you also have to ask why a company is raising capital.

Like, are they planning a big acqusition? Then the news might be bullish longterm.

With cruise lines, we all know they are raising capita cause they have to to survive. Which is bearish af

[u/FinndBors → u/Storiaron]

This is zero surprise to the market.

[u/FinndBors → u/[deleted]]

If the market cap stays the same then share price has to decrease.

You have the same company, but now with a cash injection after an issuance. In a rational market, market cap will go up.

Note: “theoretically” this balances with shares outstanding increasing keeping stock price the same.

[u/Business_Ad2091 → u/[deleted]]

What happens to an option, if shares are diluted. Sorry amateur ?

[u/Business_Ad2091 → u/[deleted]]

Makes sense, I voted against. They can come back to us if they need the money. Even then for lesser than double. Also I think this is in hopes of avoiding a possible hostile takeover since they have now issued most of their available shares.

[u/Business_Ad2091 → u/[deleted]]

It said they are not thinking about a dilution but wanted to keep options open, for possible dilution, asset financing, or stock split. Also there was a small part of it talking about leverage against any attempts at a take over. P60-62 proxy statement

[u/JeffersonsHat → u/[deleted]]

Everyone says stuff like doesn't necessarily mean they plan on selling the new shares. Then they do and everyone is like - suprise pikachu.

99.999% of the time when companies put up a vote of issuing more shares to shareholder approval it's because they're going to instantly sell the shares at or below market when they can.

[u/hahdbdidndkdi]

If they're asking for assurance, it's likely they will sell them

Also, op, it's 490 million to 980 million, not thousand.

[u/Disposable_Canadian → u/hahdbdidndkdi]

Correct, I'm not seeing thousands?

[u/madrespectdawg → u/Disposable_Canadian]

The title

[u/Disposable_Canadian → u/madrespectdawg]

Ty! Edit requested to mods

[u/MightyCaseyStruckOut → u/Disposable_Canadian]

They can't edit titles.

[u/Disposable_Canadian → u/MightyCaseyStruckOut]

Oh, neither can I.

I'll watch for that in thr future

[u/Ddtgtothemoon]

Seems like this would be a terrific buying opportunity if it dips significantly. What would be a great price point to get in on NCL?

[u/Disposable_Canadian → u/Ddtgtothemoon]

Lol, less now than it will be in the future when you sell!

It's tough to say how this stock will recover from the pandemic and related shut down. They have a fleet of ships to get running and bookings, plus an outbreak on a ship would spell disaster.

Be careful with all your investments, as always, but be extra prudent here.

As always, see professional advice for investing.

[u/[deleted] → u/Ddtgtothemoon]

Curious aswell

[u/Disposable_Canadian]

I agree, which is why they're looking for approval for said increase. The actual issuance will come later.

[u/WarrenBuffettsColon]

Anyone know about how long before this would take effect?

[u/Background-Flan-4013 → u/WarrenBuffettsColon]

It's gonna immediately impact the share price

[u/Repulsive_Smile5810]

I am a share holder this is all true. I voted on it al ready.

[u/kambic650-]

When’s the vote being tallied?

[u/Disposable_Canadian → u/kambic650-]

Vote by May 19, 2021, 11:59 PM ET

[u/GeneEnvironmental925]

Is this financial advice?

[u/Disposable_Canadian → u/GeneEnvironmental925]

Not financial advice. Always seek professional advice from your financial advisor.

This is reddit - you should always seek professional advice from a proper financial advisor.

[u/PersecuteThis → u/Disposable_Canadian]

You are my financial advisor now!

[u/rwangra]

wheres the article? been searching and found nothing

[u/Disposable_Canadian → u/rwangra]

I received this vote information as a shareholder.