Carnival Corporation Statement on effect of Costa Concordia

[paul929207]

John Heald just posted this on Facebook

 

 

CARNIVAL CORPORATION & PLC REQUIRED ANNOUNCEMENT

ON FINANCIAL IMPACT OF COSTA CONCORDIA

 

MIAMI (January 16, 2012) -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today commented on the financial impact resulting from the grounding of the Costa Concordia.

“At this time, our priority is the safety of our passengers and crew,” said Micky Arison, Carnival Corporation & plc chairman and CEO. “We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives. They will remain in our thoughts and prayers,” Arison said.

 

In accordance with financial disclosure requirements, the company provides the following information:

 

The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.

A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer. For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share. In addition, the company anticipates other costs to the business that are not possible to determine at this time.

Carnival Corporation & plc, which is the parent company of Costa Cruises, is traded on both the New York and London Stock Exchanges.

[timetravler]

The Carnival stocks will drop and it will be a good time to buy. Many will not cruise, especially those that fear cruising but were thinking of doing a cruise. Those folks will no longer even consider a cruise.

This will hurt the industry for sure. What do you think?:(

[Tony Villano]

In addition, the company anticipates other costs to the business that are not possible to determine at this time.

 

Neatly understated.

[claroquesi]

I think European sales are going to be tough. The economy there is already bad and when you add this to it, I bet people do staycations or land based activities.

 

I don't think this will strongly affect sales in the Americas for cruises in the Americas. I do think certain ports will suffer over the next year as captains look at reef locations with a re-newed abundance of caution. The one that springs to mind right away is Roatan, that is a tight spot, and I bet it gets re-evaluated as a cruise port because of this.

[paul929207]

In London trading the stock is down about 17% today. US markets are closed today (Monday) for MLK Day.

[crusinbanjo]

In London trading the stock is down about 17% today. US markets are closed today (Monday) for MLK Day.

 

Hearts go out to all who were on the ship, I'm sure all of them need our prayers and CCL's assistance. Let's hope it works out well for them.

 

As far as the stock goes...

Hard to know, having the stock decline 17% from Friday puts it near the 52 week low. I think if it breaks below the low with big volume, it will be trouble. If it goes below the 52 week level on low volume, then it signals that the smart money is staying in the stock and a buy might be a good long term play!

[paul929207]

Hearts go out to all who were on the ship, I'm sure all of them need our prayers and CCL's assistance. Let's hope it works out well for them.

 

As far as the stock goes...

Hard to know, having the stock decline 17% from Friday puts it near the 52 week low. I think if it breaks below the low with big volume, it will be trouble. If it goes below the 52 week level on low volume, then it signals that the smart money is staying in the stock and a buy might be a good long term play!

I bought for the OBC. The dividend is a nice plus. Any capital appreciation is nice, but I am not selling as long as I am cruising.

[Pia1913]

Hearts go out to all who were on the ship, I'm sure all of them need our prayers and CCL's assistance. Let's hope it works out well for them.

 

As far as the stock goes...

Hard to know, having the stock decline 17% from Friday puts it near the 52 week low. I think if it breaks below the low with big volume, it will be trouble. If it goes below the 52 week level on low volume, then it signals that the smart money is staying in the stock and a buy might be a good long term play!

 

We'll see tomorrow. Just placed four buy orders with Fidelity account.

[Loonbeam]

I'm already exposed enough that I won't be buying more (tomorrow is gonna HURT, but I am confident in recovery long term)

 

That said, I have advised some occasional cruisers I know that now would be a good time to pick up shares for OBC and mid term growth.

 

I have mixed feelings about that, in one sense it feels like profiting from a tragedy (even though I won't), in another its supporting the business entity.

 

One side note is that I do expect a possible dividend reduction as a result of this for a while as cash is reallocated.

[Pia1913]

I'm already exposed enough that I won't be buying more (tomorrow is gonna HURT, but I am confident in recovery long term)

 

That said, I have advised some occasional cruisers I know that now would be a good time to pick up shares for OBC and mid term growth.

 

I have mixed feelings about that, in one sense it feels like profiting from a tragedy (even though I won't), in another its supporting the business entity.

 

One side note is that I do expect a possible dividend reduction as a result of this for a while as cash is reallocated.

 

I've owned the stock many years; before there was such a thing as OBC. I certainly have enough; more than enough. Actually maybe too much. But the market is something I actively pursue and when there is a good buy (as I see it), I buy. And if i make a few buck; fine. I sell. Quick in and out with Fidelity is great, since it only costs $7.95/trade. I can't look at this as profiting from a tragedy, since so many securities fluctuate on a daily basis for no reason at all.

[brucedodge]

We'll see tomorrow. Just placed four buy orders with Fidelity account.

 

Pia,

 

Probably a very astute move! ;) I like to buy into fear. It normally works well.

 

Bruce

[Loonbeam]

Agreed, but any more CCL will push me even further out of balance..I do think its a good option as a mid term (3-5 years) play.

 

I've owned the stock many years; before there was such a thing as OBC. I certainly have enough; more than enough. Actually maybe too much. But the market is something I actively pursue and when there is a good buy (as I see it), I buy. And if i make a few buck; fine. I sell. Quick in and out with Fidelity is great, since it only costs $7.95/trade. I can't look at this as profiting from a tragedy, since so many securities fluctuate on a daily basis for no reason at all.

[Mindy43]

I bought for the OBC. The dividend is a nice plus. Any capital appreciation is nice, but I am not selling as long as I am cruising.

 

 

Ditto, Paul.

[Pia1913]

Agreed, but any more CCL will push me even further out of balance..I do think its a good option as a mid term (3-5 years) play.

 

At your age I would probably think that way too. To me it's just another trade in my IRA.