Jim Cramer Highlights Norwegian Cruise Line as a Strategic Target for Disney

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is one of the stocks in focus this week under Jim Cramer’s game plan. Cramer mentioned the company during the episode, as he said:

Look out, Norwegian Cruise reports on Monday, and the activists at Elliott Management are after this company to start performing a little more like the standouts, Royal Caribbean and Viking Holdings. Elliott’s had some real wins of late: Honeywell, Southwest Air, Texas Instruments, J. M. Smucker. The latter, true shocker, given that it includes Hostess brands, a junk food that was supposed to be obliterated by the GLP1s. My suggestion for Norwegian Cruise: sell yourself to Disney, which is desperate for ships, as there’s a big ship shortage. It’s an $11 billion company, this Norwegian.

Disney could write a check like this, and sell the smaller ships, refurbish only the largest ones, and make the cruise line a much bigger part of their business instantly. That matters. Disney stock is stuck in cable TV purgatory. It could soar if it finds a way to build itself as more of a vacation paradise company. I know it would be radical, and it might take some time to retune the fleet to Disney standards. By my count, there are at least 10 Norwegian ships that could be made over as Disney ships right now. Disney has seven ships, soon to be eight. They’re more upscale than Norwegian, but they can be fixed.

I think it’s a smart move as ordering a new cruise ship takes about five years. It’s the time that’s the problem, not just the money. Now, time is right for Disney if they do it. You know why? Because the new CEO, Josh D’Amaro, well, he’s ran the cruise ship business. So I say we buy Norwegian and put the emphasis on entertainment and not linear TV, which is now… behind us. David Faber and I talk about linear TV all the time, and we know how terrible it’s doing.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) manages cruise brands that provide travel amenities, from dining and entertainment to shore excursions and hotel packages.

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