Carnival Stock went down

[CRUISEWITHH]

Did anybody notice that Carnival stock is taking a dip. My broker told me it's due to Brexit.

 

I know it was at about $52 now it is down to approximately $44 per share.

 

I'm sure it will bounce back and anyway I enjoy the OBC that I get.

[IECalCruiser]

CCL took about a 6 point drop from around 49 to around 43 in the two days after the Brexit vote. Many stocks recovered those loses over the next several days but CCL has only come back about two points. The weakness of the Pound and the Euro could be the cause.

[Kenswing]

Stocks go up, stocks go down.. As long as the fundamentals are sound I wouldn't worry..

[mllewis48]

Stocks go up, stocks go down.. As long as the fundamentals are sound I wouldn't worry..

 

 

 

Up $1.11 today almost back to $46, coming back. May be tied to their new ship being announced?

 

 

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[Kenswing]

Up $1.11 today almost back to $46, coming back. May be tied to their new ship being announced?

 

 

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They announced a new ship?

 

My guess is that the stock was oversold and investors saw a good time to get back in..

[mllewis48]

They announced a new ship?

 

 

 

My guess is that the stock was oversold and investors saw a good time to get back in..

 

 

 

Yes a new Pinnacle Class called the Nieuw Statendam, expected Fall 2018.

 

 

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[moki'smommy]

It was as high as $54 about 6 months ago. Yes, big drop at Brexit with only a little recovery. However, if you aren't thinking of selling, who cares? I'll hold it because the OBC is good and I expect long term growth.

[Colo Cruiser]

It will come back.

[Host Jazzbeau]

The dividend stays the same [actually goes up pretty regularly] and the stockholder credit stays the same -- so if the price goes down, your ROI goes up. There's always a silver lining!

[neverbeenhere]

I own 100 shares for one reason. Who cares about the price of the shares. If I owned 10,000 shares then I would care.

[Kenswing]

The dividend stays the same [actually goes up pretty regularly] and the stockholder credit stays the same -- so if the price goes down, your ROI goes up. There's always a silver lining!

 

I think you're confusing rate of return with return on investment.. ;)

 

If the price goes down and the dividend remains the same the percent of that dividend goes up. But your return on investment is based on what price you purchased the stock at.

Edited July 12, 2016 by Kenswing

[moki'smommy]

Agree--100 shares for exactly one reason on each cruise. Price may matter "some day" but I don't see that day any time soon.

[satxdiver]

Carnival Corp owns P&O in the UK, Costa and AIDA which operate mostly in Europe. Cunard mostly sails between the USA and Europe. Because of Brexit, the British and European markets are depressed. This of course has an impact on Carnival Corp stock which we have seen. Until the British and European markets settle down, Carnival stock will be impacted. The 52 week high for RCL was $103 in January. Today it is selling for $69 so they were hurt as well. This happens in the world market. The OBC stays the same as does the dividend.

[Host Walt]

Unlike CCL, RCI has held steady over the last few weeks.

 

I'm guessing that the dip of CCL is a result of their P&O brands (UK and Aus) where the Britexit was severe but RCI doesn't have any UK or Aus businesses.

 

In any case I agree with Jazzbeau that the shareholder benefit makes market watching a silly exercise, so long as you are holding the requisite 100 shares.

[Host Jazzbeau]

Your perspective will differ depending on when you bought the stocks. CCL closed at 45.63 today; its 52-wk high was 55.77, so it's off 18%. RCL closed at 69.56 today; its 52-wk high was 103.40 so it is off 32%. CCL pays a higher dividend rate, and CCL actually lets you use the stockholder benefit while RCL always finds a reason that it doesn't apply. So on that analysis, CCL is a much better investment than RCL. OTOH when I bought them CCL cost me more than RCL, so from my perspective CCL has been ok but RCL has doubled in value. Overall, both stocks have been very good to me!

[cactusrose]

Erased my post

Edited July 12, 2016 by cactusrose

[neverbeenhere]

Erased my post

 

 

If you were going to tell the old Montara "Stock" joke, go right ahead.

Edited July 12, 2016 by neverbeenhere

[JohnS43]

I bought mine RIGHT before it started to go down (naturally) at around $50. I have some friends who bought it years ago and it has more than doubled in value -- and actually ended up splitting so they ended up with more than 100 shares.

[caribill]

Unlike CCL, RCI has held steady over the last few weeks.

 

 

RCI day before Brexit: closed at $77.15

RCI today: closed at $69.56

 

So, still down 9.8% since Brexit.

 

Low closing price after Brexit was $65.63.

 

I would not call that holding steady.

Edited July 12, 2016 by caribill

[hansi]

As long as I get my free $250 every time I cruise, I care not a jot whether they go up or down. I didn't buy them as an investment, just for the OBC. However, as I bought them in 2008 at a very low price, I am showing a nice profit too. That's just a bonus:D:D

[linanles]

but RCI doesn't have any UK or Aus businesses.

I don't know where you get that idea. Check on RCI cruises out of Sydney and Brisbane, Australia. I don't know if the have any companies registered in Australia but they do a lot of business here and Brexit was only a little blip on the Australian financial markets from which it quickly recovered.

I bought 100 x CCL at $47.80 two days before Brexit and I'm still waiting for them to recover.

[long cruiser]

We bought the stock at $38.00 five or six years ago.Taking at least 3-4 two week or longer cruises every year,the stock cost us next to nothing.

long cruiser

[Grego]

I own 100 shares for one reason. Who cares about the price of the shares. If I owned 10,000 shares then I would care.

 

We own 100 shares to take advantage of the Shareholder Benefit but also because we always invest in the companies that make products we choose to use. It's funny watching some of the folks posting the stock price changes and sounding like they are "day traders". We bought the stock when it was $33 a share for the reasons above and never looked at it as a growth opportunity but rather as an income and "nontaxable dividend" provider with the SB.

[Esprit]

We bought ours prior to the P&O Princess International PLC and Carnival Corporation merger back in 2003.

 

The paper gain we currently have is frighteningly big, made more so by the dividend reinvestments we opted for!

[dreaminofcruisin]

I for one, was glad to see the price dip as I had been thinking of buying it for the Shareholder OBC! Worked for me! :D