What's Up with Carnival Stock [CCL]?

[lopat08865]

Thought about buying 100 shares for the OBC, but yesterday it was up 2% and right now it's up another 3.5% today (RCL has also had nearly identical gains). Needless to say I'm wary to take a flyer on it without knowing why.

 

I had read a really interesting thread here a while back from some knowledgeable people on the subject of buying the stock for the OBC vs buying it as an investment.

 

Don't really want to revisit that discussion, just thought some of the stock-savvy people here might have an idea why cruise stocks are in the process of posting 2 straight days of solid gains while the Dow & the S&P have basically been flat?

[Gail & Marty sailing away]

We cruise a lot , so for us it is great ..

[EmmasNana]

Carnival said bookings were up and also they got upgraded to a buy from...I forgot who.

I had my daughter purchase 100 shares when it was $30.50 for her cruise in two weeks. I called her this morning and told her to sell if she can get $35.25 or $35.50.

Personally, I would not purchase at this price.

[CWcruisers]

Carnival said bookings were up and also they got upgraded to a buy from...I forgot who.

I had my daughter purchase 100 shares when it was $30.50 for her cruise in two weeks. I called her this morning and told her to sell if she can get $35.25 or $35.50.

Personally, I would not purchase at this price.

 

At one time, it went to $48 so who knows.

 

I think if you cruise alot, it makes sense. If I had bought it when I first started cruising, it would have more than paid for itself by now, but I'll just have to book more cruises to get my money's worth.

[loubetti]

Carnival said bookings were up and also they got upgraded to a buy from...I forgot who.

I had my daughter purchase 100 shares when it was $30.50 for her cruise in two weeks. I called her this morning and told her to sell if she can get $35.25 or $35.50.

Personally, I would not purchase at this price.

 

Not wanting to give advice, but I do agree with you. For just getting an OBC, this could go either way. I still think cruise line investments are still at above average risk.

 

CCL's 52 week range has been 28.52 to 37.71. Might there be some further upside, of course, but never forget, there are two ways to purchase a stock: "Long" and "Short". Also, they still have Concordia looming over them. Obviously, if you short CCL stock there is no OBC, but a negative move in the stock's price could give you the same or more gain.

 

These days I would never purchase a cruise line's stock just for an OBC, as that OBC could be easily wiped out and then some. While 100 shares might not seem like a lot, a -7% move over over a couple of weeks could wipe out your OBC.

 

Seriously, don't play the market for an OBC, especially with cruise lines these days.

 

You would be better off seeking sound financial advice, and investing in any stock that will give you a better chance of an OBC equivalent return.

 

Example: I shorted Facebook right after it went public at around $36 for me, and I am very happy to see it at $19 today. That wasn't just an OBC for me, but an entire cruise in a suite on Celebrity! I did the same with American Airlines, and shorted it when I saw the bankruptcy looming, and cashed out at about a 500% profit on the day they announced chapter 11.

 

Not bragging, just telling you not to play the market for an OBC unless you really know what you're doing.

 

Always remember, when you buy a somewhat risky stock, and go long, folks like me might come in and short it, and that will often ruin your day!

[Mulege]

Not wanting to give advice, but I do agree with you. For just getting an OBC, this could go either way. I still think cruise line investments are still at above average risk.

 

Always remember, when you buy a somewhat risky stock, and go long, folks like me might come in and short it, and that will often ruin your day!

 

I hope you shorted GMCR!!!

[swedish weave]

We cruise a lot ' date=' so for us it is great ..[/quote']

 

Same here !! I bought solely for the OBC with money that was sitting in an account doing nothing!!

[golfadj]

Not wanting to give advice, but I do agree with you. For just getting an OBC, this could go either way. I still think cruise line investments are still at above average risk.

 

CCL's 52 week range has been 28.52 to 37.71. Might there be some further upside, of course, but never forget, there are two ways to purchase a stock: "Long" and "Short". Also, they still have Concordia looming over them. Obviously, if you short CCL stock there is no OBC, but a negative move in the stock's price could give you the same or more gain.

 

These days I would never purchase a cruise line's stock just for an OBC, as that OBC could be easily wiped out and then some. While 100 shares might not seem like a lot, a -7% move over over a couple of weeks could wipe out your OBC.

 

Seriously, don't play the market for an OBC, especially with cruise lines these days.

 

You would be better off seeking sound financial advice, and investing in any stock that will give you a better chance of an OBC equivalent return.

 

Example: I shorted Facebook right after it went public at around $36 for me, and I am very happy to see it at $19 today. That wasn't just an OBC for me, but an entire cruise in a suite on Celebrity! I did the same with American Airlines, and shorted it when I saw the bankruptcy looming, and cashed out at about a 500% profit on the day they announced chapter 11.

 

Not bragging, just telling you not to play the market for an OBC unless you really know what you're doing.

 

Always remember, when you buy a somewhat risky stock, and go long, folks like me might come in and short it, and that will often ruin your day!

 

Good advise

[brilliantseas]

Less CapEx over the next few years gives Carnival some room to hopefully pay down their debt and put some cash in the bank, but at the same time it also means that the growth could be slowing, especially with two Costa ships now out of commission. Princess and Aida will have to lead the growth over the next three or four years if the stock price is to continue to rise.

 

I bought back in the high $30's and have enjoyed the free OBC on three cruises now, so I have re-couped some of my losses, but I still have faith that the stock can recover as long as fuel prices remain in check and the economy recovers.

[c&d]

I bought CCL about 8 years ago. Bought it for the obc. I still own the original 100 shares.

 

It goes up and down.

 

A few years ago they stopped paying a dividend. But continued with the obc. They now pay the dividend. Which is quite good IMO

 

Like any investment in the stock market it is a gamble. Like others have said I would not buy it for the obc. What you would pay in fees far out weighs the short term benefit of the obc.

 

Keep in mind you receive the obc on all Carnival Corp ships.

 

I would only consider purchasing if it was a long term investment. It is a gamble

[Wolfie48]

Not wanting to give advice, but I do agree with you. For just getting an OBC, this could go either way. I still think cruise line investments are still at above average risk.

 

CCL's 52 week range has been 28.52 to 37.71. Might there be some further upside, of course, but never forget, there are two ways to purchase a stock: "Long" and "Short". Also, they still have Concordia looming over them. Obviously, if you short CCL stock there is no OBC, but a negative move in the stock's price could give you the same or more gain.

 

These days I would never purchase a cruise line's stock just for an OBC, as that OBC could be easily wiped out and then some. While 100 shares might not seem like a lot, a -7% move over over a couple of weeks could wipe out your OBC.

 

Seriously, don't play the market for an OBC, especially with cruise lines these days.

 

You would be better off seeking sound financial advice, and investing in any stock that will give you a better chance of an OBC equivalent return.

 

Example: I shorted Facebook right after it went public at around $36 for me, and I am very happy to see it at $19 today. That wasn't just an OBC for me, but an entire cruise in a suite on Celebrity! I did the same with American Airlines, and shorted it when I saw the bankruptcy looming, and cashed out at about a 500% profit on the day they announced chapter 11.

 

Not bragging, just telling you not to play the market for an OBC unless you really know what you're doing.

 

Always remember, when you buy a somewhat risky stock, and go long, folks like me might come in and short it, and that will often ruin your day!

 

And whatever you do don't take stock advice from anyone on a chatboard. :rolleyes: