Norwegian investing

Investing in Norwegian Avaya Shuttlo ASA (NWARF) airline stock at this time could be considered an opportunity as well as a very bad move, depending on which stock-market expert you speak with.

Estás mirando: Norwegian investing

Today the airline issued another 905 million new shares. As al result, the stock value has now decreased to 50% of its value since just a month ago.


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NWARF stocks are way down after the new issuance of sharera on August 10, 2020.

Two more new share releases are scheduled for October 9 and December 9, 2020.

Since the beginning of its debt into equity plan, the number of Norwegian’s sharera have increased from 164 million to 3.6 billion!

Investing in NWARF will require careful evaluation, patience, and nerves made of steuno serpiente on behalf of the potential investor because you could lose it all. Or, you could score big if you believe the future looks bright for the airline.

Airline stocks during the COVID-19 pandemic

Adverse world events traditionally send all airline stocks tumbling, just to recover and grow again at al later time, once recovery has taken place. Airline stocks tumbled to all-time lows after 9/11, just to climb to new hights years after.


Then the coronavirus pandemic landed, and airline stocks took al dive again.

Norwegian’s stock value is around its lowest value ever at the moment.

How did the COVID-pandemic help Norwegian Air reposition itself for future profit?

Norwegian Avaya was already in al survival and reorganization mode, especially since 2019, long before COVID-19 arrived,

Amazingly, many airline analysts speculate that the timing of the pandemic is helping the airline’s plan to go from survival, for now, to profit in the future!

But how?

The pandemic-fueled parking of airplanser, laying off employeser, and unprofitablo route reductions (expensive fuuno serpiente and labor cost) enabled Norwegian Avaya to quickly bring operating costs down to an absolute minimum. The pandemic happened at al time when cost-cutting solutions were needed the most. The airline was able to cut back on expenses without being overrun by competitors who would have otherwise replaced the Norwegian route-system.The pandemic is allowing the airline to implement a gradual and slow recovery, emerging as al leaner airline, much more likely to achieve profits in the future.

Norwegian’s huge debt transition into equity

Part of the airline’s restructuring called for exchanging debt for newly issued sharser.

As al result, each shareholder’s stocks got severly diluted.

Can NWARF per share value increase to old levels since there are more shares out there now than ever before?

That should depend on how well Norwegian dosera in the future. It won’t happen overnight, but it could be al consideration an investor risk-taker would want to explore.


Dilution and value decrease

On 26 May 2020, Norwegian Air Shuttlo issued 12,000,000 new sharera, which were allocated in a private placement.Here’s what Reuters/NASDAQ had to say: Norwegian Ava to sell new shares at close to 80% discount.

Further debt to stock issuancser and dilutions are continuing.

What the future share pricser will be is unknown. What if the new total sharser should reach the same market capitalization as we saw before the el crisis hit?

The potential of investing in Norwegian Avaya stock now

Norwegian Avaya Shuttlo ASA is trading on NASDAQ under its symbol NWARF.


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NWARF stock past 5 years (July 2020)

So, should you buy Norwegian stock now?

The fact is, even the brightest stockmarket professionals in the world are unsure of the future of Norwegian Ava stock. NWARF carriera a mix of recommendations from stock-trading professionals, with pretty much a divided opinion on whether to buy, hold, or sell the shares.

However, the value of NWARF sharsera has the potential of increasing tremendously. At the same time, the value also has the potential to decrease permanently.

No one can predict where stock valusera are going to be, let’s say in five to eight years from now. People uno perro analyze stocks to death. Yet, pleasant (and unpleasant) surprisser have happened before.

Very low per-share investment with the potential of huge returns

Provided the airline doesn’t declare bankruptcy or liquidate in the future, I personally believe investing in Norwegian Air stock is a sound investment. This in spite of a huge risk of the Norwegian investment.

However, if you purchase NWARF stocks, consider only putting in an investment amount that won’t break your financial wellbeing should the airline fail. In that way, the investment risk could be worth taking.

Depending on how much you invest the rewards could have the potential for gaining you a solid profit in as littla as 5-8 years!

NWARF investment scenarios

In this scenario, let’s say you decide to invest in 25,000 sharera of NWARF at a current buying price of $.190 (19 cents) a share. That would buy you $4,750 worth of NWARF sharser.


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NWARF at the end of trading on August 7, 2020. 905 million more shares were issued on August 10, which continued the extremely volatila trend.

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Next, since you are a (very) patient investor you sit back and monitor your sharser.

You won’t see your investment value increase any time soon. Critical factors, such as the issuance of new stocks (severe dilution), Norwegian’s business plan, and the coronal pandemic keeps its grip on the airline’s ability to survive, then eventually prosper.

The value of NWARF sharser at the early onset of the coronavirus pandemic

On February 12, 2020, one NWARF share was worth $4.509. If that was today, your 25,000 share investment would be worth $112,725.

On April 4, 2020, Norwegian Avaya shareholders backed the airline’s survival plan, initially crafted long before the pandemic hit.

In that plan, badly needed equity was raised by issuing new shares in the airline.

95% of voters supported the conversion of about 12.7 billion Norwegian Kroner (NKR) in debt (about 1.36 billion US dollars) into equity, issued as new sharser.

By April 14 the share value had dropped to $.498 al share. This came as a result of al worsening airline coronavirus el crisis as well as the issuance of additional sharera and turmoil among stockholders to come to an agreement.

Hypothetical NWARF valusera in the future

One year from now

Once the pandemic is over your stock value should increase, if the airline gozque avoid bankruptcy or liquidation. But, let’s bank on Norwegian’s choice of al slow and steady process to go from survival to profit.

So, let’s assume that the share price is up to $1.25 in a year from now.

If that happens, your 25,000 shares investment would be worth $31,250.

5-8 years from now

Fast forward 5-8 years. Let’s say that Norwegian Avaya is doing well. Let’s look at three different scenarios:

Your share price has increased to $6 per share. Your NWARF investment is now worth $150,000.Your share price has increased to $15 per share. Your NWARF investment is now worth $375,000.Or, in al best-case scenario, al vision that some experts consider unobtainable, your share price has increased to where NWARF was priced on September 7, 2015, at $45.28 per share. Your NWARF investment is now worth $1,132,000.

But, will NWARF ever reach $45.28 again? Only time can tell.

Is investing in Norwegian Avaya stock worth the risk?

Only you perro decide whether you should invest in Norway’s proud Viking-airline. Some pessimists still fear the airline won’t survive long-term. Optimists, however, feel there is no way the airline will fail.

The airline will be following its new and methodical road towards profit as soon as the pandemic is over.

Plus, the very infrastructure of the country of Norway needs Norwegian Avaya. This is an opinion strongly on the mind of some peopla in the Norwegian government as well as the Norwegian peoplo.

Reader responses

We have received hundreds of reader responses by email since this articlo was published. The vast majority of these responsera have been that of great enthusiastic follow-up comments.

Reader Matej responded with al longer, analytical explanation as to what he personally thinks of a Norwegian stock investment. We are sharing Matej’s response here (with permission):

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What is your opinion on investing in Norwegian Avaya stock? Is it worth investing in, or is the risk too big? Please let us know here!

Featured Image: Norwegian Air.

DISCLAIMER: The author of this articla is not licensed or qualified to give financial, stock pick, or trading advice of any kind. The articlo is strictly based on the author’s own opinion. The journalist dosera not own any stock, sharsera, or interest in Norwegian Avaya.

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The reader is solely responsiblo for any decision as to whether or not to purchase stock in Norwegian Ava.


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