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CCL Had a Rough Day

winddawn

By winddawn,
in Carnival Cruise Lines

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winddawn

winddawn

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CCL stock had a rough day today, down almost 8% on the day. CEO Arnold Donald did not have good news today. Might be bad for current shareholders in the short term, good for those looking to buy CCL stock on a dip, but maybe good for passengers looking for booking incentives in the near term if Carnival decides to boost sales with incentives.

 

http://fortune.com/2018/06/25/carnival-cruises-stock-shares-down/

 

I've held my CCL shares for years, so I don't stress about short-term performance. It's a great long-term investment IMHO, especially considering the dividends and onboard credit for Carnival Corp cruisers of their many cruise brands.

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winddawn

winddawn

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Saw a news blurb that CCL lowered its profit forecast due to higher fuel costs. Sure hope they don't try to bring back the dreaded "fuel supplement" charge. :mad:

 

Me too, joepeka! I hope those fuel supplements never return. It sounds like a combination of things are affecting the profit outlook for cruise lines, so hopefully that's far on the back burner.

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winddawn

winddawn

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Thats the stock market for you. Nothing goes up forever and companies do not always have good financial news to share

 

Well here's the thing. CCL stock is down 11.8% year-to-date. And down 7.85% today alone. CCL is traded on the New York Stock Exchange which is down 2.55% year-to-date. So the takeaway is that CCL has not been able to beat the NYSE composite for the year. That's considerably more meaningful than "nothing goes up forever." Many consider being able to beat index funds for the exchange a particular stock is traded on to be a benchmark. So that is very meaningful for CCL stock and for its management and shareholders. And for us here on this board, its potentially very meaningful for the possible price of our next booking.

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jmcathome

jmcathome

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As said this was not Carnival specific, even Royal Caribbean had a bad day and most of the market. CEO was not worried much as blamed most of minor problems on higher fuel. Cruisers might want to worry about return of fuel supplement if that was the only reason for the miss. i do know that all the time they had fuel supplements i never saw them charge it, but they did have one lol

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jimbo5544 "Live from...." Rare

jimbo5544

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Carnival may be running out of free stuff to cut to inflate their stock dividend. I'm sure the debts for new ships are also weighing b things down, but let's blame it on gas prices.

 

 

 

Facts are that their new ship debt pales in comparison to the other main players. Not sure how that ties to “cutting free stuff” as it seem very obvious, even if it were true, it would be more bashing then could have affect on profits.....right?

 

 

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elcuchio24

elcuchio24

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CCL stock had a rough day today, down almost 8% on the day. CEO Arnold Donald did not have good news today. Might be bad for current shareholders in the short term, good for those looking to buy CCL stock on a dip, but maybe good for passengers looking for booking incentives in the near term if Carnival decides to boost sales with incentives.

 

http://fortune.com/2018/06/25/carnival-cruises-stock-shares-down/

 

I've held my CCL shares for years, so I don't stress about short-term performance. It's a great long-term investment IMHO, especially considering the dividends and onboard credit for Carnival Corp cruisers of their many cruise brands.

 

The other lines dropped along with it, although not quite to the same extent. I agree with your philosophy and outlook.

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elcuchio24

elcuchio24

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Arnold actually said that bookings were up and that most of looses were due to fuel cost. Actually revenue was up for the quarter and they would beat earnings for year

 

Ya but they dropped their outlook, and there is nothing the analysts hate more than that!

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Moviela

Moviela

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This is what the big players do. Sell on the news and take a profit. Not only fuel prices caused the dip. Trade disputes with China are weighing heavily on the market. Some traders will take a profit now, and wait to see if Trump or Xi blinks first.

 

Sent from my SM-G950U using Forums mobile app

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Blackjack22

Blackjack22

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This is what the big players do. Sell on the news and take a profit. Not only fuel prices caused the dip. Trade disputes with China are weighing heavily on the market. Some traders will take a profit now, and wait to see if Trump or Xi blinks first.

 

Sent from my SM-G950U using Forums mobile app

 

 

how do you take a profit when the security is devalued? :confused:

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Raxter54

Raxter54

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I predict FTTF will have another price increase, and they will sell more units, to help fund the company.
Not sure about that. FTTF has been available on our Dream February 2019 cruise for about six weeks, hasn't sold out yet. It's usually snapped up pretty quick. They might have reached the price ceiling for it. [emoji6]

 

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joepeka

joepeka

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Not at all, CCL's stock price has nothing to do with cruising. Maybe oil prices or lobster prices but stock price is a backward looking indicator of a company's past performance according to the bean counters.

So the price of Carnival's corporate stock has nothing to do with cruising? Maybe not directly to a cruise enthusiast but it is of interest and does relate to our view of the company and the potential effect on future cruise pricing. And speaking of the future, stock prices are always forward looking (as someone has already mentioned), past profitability factors little into current stock price.

Edited by joepeka
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winddawn

winddawn

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Thanks everyone for sharing your thoughts about CCL stock. I'm glad the stock has rebounded some today. Like many others, I like to anticipate whether fares will rise or fall in the short term because it affects my cruising prospects. :D :D I'm sad there are a couple negative Nellies here that are having a bad week. Hopefully next week will be better for them. Sounds like they're overdue for a Carnival cruise!

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jimbo5544 "Live from...." Rare

jimbo5544

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Thanks everyone for sharing your thoughts about CCL stock. I'm glad the stock has rebounded some today. Like many others, I like to anticipate whether fares will rise or fall in the short term because it affects my cruising prospects. :D :D I'm sad there are a couple negative Nellies here that are having a bad week. Hopefully next week will be better for them. Sounds like they're overdue for a Carnival cruise!

Negative Nellies are like sharks drawn to blood, it turns into a feeding frenzy....

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