We've seen some dissapointing IPO results in the last severaly months, so it is encouraging to see such a strong first day for Norwegian Cruise (NCLH), which went public Friday. The offering was priced at $19 a share, but it soared more than 30% in its first day of trading hitting a high of $25.49 before settling closer to $25.
We got hints that the IPO was going to strongly received by investors last night when the offering priced at $19, higher than the expected range of $16 to $18.
A big reason the stock is being so well received is that its industry as a whole has been strong over the past year.
Despite several public relations nightmares, Carnival (CCL) is up 11% over the past 12 months, while Royal Caribbean (RCL) has gained 30% during the same time period.
For the first nine months of 2012, Norwegian earned $165 million, on $2.2 billion in revenues. Both of these figures were up 29% from the same period last year.
Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. In addition to writing for Fresh Brewed Media, Michael also wrote for AOL's BloggingStocks for three years, focusing most of his attention on the energy and technology sectors. Follow him on Twitter at @MFatMICenter.