SIX MONTHS FROM NOW, DON'T BLAME US WHEN YOU DID WHEN YOU DIDN'T BUY THIS CORRECTION
Context
"I like what the analysts had to say about Viking. Quote, six months from now, don't blame us when you did when you didn't buy this correction, end quote."
Context
"BUT WHEN YOU DIG INTO THE QUARTER, DIG THE DETAILS. I THINK THEY'RE FANTASTIC. AND YES, THERE WERE VOUCHERS, BUT THE STOCK IS ABSOLUTELY WORTH OWNING"
Full Transcript
AVOID THE PROBLEM ENTIRELY. THE BUS RIDE THING. THEN CAME THE NEXT LINE, WHICH IS WHAT TORPEDOED THE STOCK. ARE YOU READY TO. LACTIC SAID THAT IN SOME CASES, VIKING ALSO ISSUED VOUCHERS. YES, THEY'RE ISSUING VOUCHERS TO CERTAIN AFFECTED GUESTS. HERE'S HOW SHE PUT IT. QUOTE, WHILE WE BELIEVE THIS IS THE RIGHT APPROACH FROM BOTH THE GUEST SATISFACTION AND LOYALTY PERSPECTIVE, THESE VOUCHERS WILL HAVE A FINANCIAL IMPACT EXTENDING BEYOND 2020 AND INTO 2027 AND 2028 AS THEY ARE REDEEMED, END QUOTE. SHE DESCRIBED THE MOVE AS, QUOTE, AN INVESTMENT, END QUOTE, THAT WILL BUILD TRUST AND SUPPORT LONG TERM LOYALTY TO VIKING. WOW. OKAY. I THINK SHE'S RIGHT. THIS IS A GREAT WAY TO ENTICE CUSTOMERS LONG TERM. BUT SINCE VIKING IN PART, IS THE FACT THAT THIS COMPANY UNDERSTANDS ITS UPSCALE CLIENTELE AND DOES EVERYTHING IT CAN TO GIVE THEM A PERFECT EXPERIENCE, THIS IS A LUXURY CRUISE BRAND, AND ITS CLIENTS WANT LUXURY TREATMENT, SO IF LOW WATER LEVELS MESS UP YOUR CRUISE, THE COMPANY WILL COMPENSATE YOU. IF VIKING THINKS THIS IS THE BEST WAY TO RETAIN CUSTOMER LOYALTY, I BELIEVE THEM, BUT WALL STREET MOSTLY CARES ABOUT THE NUMBERS, AND THESE VOUCHERS WILL CAUSE A HIT TO EARNINGS IN 2027 2028. HENCE THE MELTDOWN IN THE STOCK. AND ALSO I THINK THERE'S A SENSE. WOW. I MEAN VOUCHERS ON VIKING. NO. LOOK I THINK IT'S CRAZY THAT PEOPLE HAVE BEEN SELLING THIS THING. RESPONSE TO ONE ESPECIALLY HOT SUMMER IN EUROPE. VIKING PUT UP EXCELLENT RESULTS BOOKINGS FOR THE REST OF THE YEAR IN 2027. INCREDIBLY STRONG TO ME. AND THAT'S MUCH MORE IMPORTANT THAN THE COST OF VOUCHERS THEY'RE GIVING OUT PEOPLE TO FOR PEOPLE WHO WANT, YOU KNOW, WHO GOT DISRUPTED ON THE RIVER CRUISE, I DON'T KNOW, I'M BETTING THE REST OF THE MARKET WILL COME AROUND TO MY POSITION HERE. I LIKE WHAT THE ANALYSTS HAD TO SAY ABOUT VIKING. QUOTE, SIX MONTHS FROM NOW, DON'T BLAME US WHEN YOU DID WHEN YOU DIDN'T BUY THIS CORRECTION, END QUOTE. I COULD NOT AGREE MORE TO WHAT STIEFEL SAYS, WHICH IS WHY I'M TELLING YOU TO BUY THE STOCK INTO ITS RECENT WEAKNESS. HEY, BY THE WAY, AFTER THIS PULLBACK, VIKING NOW SELLS FOR JUST 26.5 TIMES THIS YEAR'S EARNINGS ESTIMATES. I KNOW THAT SOME OF YOU MAY THINK THAT'S EXPENSIVE COMPARED TO THE REST OF THE INDUSTRY, BUT LIKE I SAID BEFORE, VIKING'S BEST OF BREED AND THE STOCK'S ALWAYS COMMANDED A PREMIUM VALUATION. PLUS THE COMPANY'S GROWING EARNINGS AT A 25% CLIP THIS YEAR, PAYING 26.5 TIMES EARNINGS FOR THE STOCK. IT'S ON THE LOW END OF WHAT WALL STREET'S WILLING TO FORK OVER FOR GROWTH. HERE'S THE BOTTOM LINE OF WHAT IS ESSENTIALLY A CONFUSING STORY. VIKING HOLDINGS, LIKE THE REST OF THE CRUISE LINES, HAS SOLD OFF HARD THIS MONTH, DOWN MORE THAN 20% FROM ITS ALL TIME HIGH IN AUGUST 5TH. BUT WHEN YOU DIG INTO THE QUARTER, DIG THE DETAILS. I THINK THEY'RE FANTASTIC. AND YES, THERE WERE VOUCHERS, BUT THE STOCK IS ABSOLUTELY WORTH OWNING
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