It’s been a long year — and, for most growth investors, a surprisingly lucrative one. Things will inevitably get better in 2021 in terms of tackling the pandemic and bouncing back from the economic funk, but not all stocks will go along for the ride…
Norwegian Cruise Line (NYSE:NCLH), Blink Charging (NASDAQ:BLNK), and Yelp (NYSE:YELP) are three stocks investors may want to avoid in the year ahead. Let’s take a closer look at why these three stocks may let you down in 2021.
Norwegian Cruise Line
Cruise lines have understandably been slammed in 2020. The industry was shut down in March when ships became a hotbed for the COVID-19 outbreak. As the smallest of the three top players in the industry, Norwegian Cruise Line has been hit particularly hard. The stock has shed more than half of its value in 2020. Don’t make the mistake of assuming that it can more than double in 2021 to get back to where it was just two years ago.
With negligible revenue, a nine-figure monthly cash burn rate, and the highest cash refund request rate among its peers, Norwegian Cruise Line has had to raise a lot of money in 2020 just to stay afloat. There’s a price to pay for all of the new shares and debt here. The stock may have plummeted 57% this year through Monday’s close, but Norwegian Cruise Line’s enterprise value has only dipped 9% in that time — from $18.3 billion at the beginning of 2020 to $16.6 billion now.
Norwegian Cruise Line expects to start sailing again in March, but we’ve seen that line in the sand get redrawn whenever the waves wash it away. Norwegian Cruise Line is going to…
Continue reading at THE MOTLEY FOOL