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CCL stock dips below 40

Farts

By Farts,
in Carnival Cruise Lines

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jimbo5544 "Live from...." Rare

jimbo5544

Posted
Posted
14 hours ago, LucyR. said:

I am still here waiting and hoping to cruise soon now that I am a  CCL stockholder.

YES, I do positive thinking. I get what I wish for and my wishes come true. Yea... LucyR.

Love it

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LucyR.

LucyR.

Posted
Posted

Today, I noticed that CCL stock is going up. I bought 100 shares, stock on April 8, 2020. 

I am looking forward to cruising on the Royal Princess ship for December 14,2020. 

I just put down a small deposit. Final payment due in Sept. 2020. 

Princess cruise ships located in Seattle, Wa. will start cruising in July 2020 to Alaska.

Royal Princess will start cruising in October 2020, Calif. Coastal, and Mex-Riviera. LucyR.

 

 

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bamaone

bamaone

Posted
Posted
21 minutes ago, fyree39 said:

I expect the dividend and OBC from stock shares will have to go away for a few years while they recover. 

 

Dividends will be cut for while but why would Carnival cut a good marketing tool like OBC? In a time when passengers are needed it does not make sense.

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chipmaster

chipmaster

Posted
Posted (edited)
4 hours ago, CRocks said:

Yup, dividends are never guaranteed, + I'm afraid I agree, not much choice but to suspend shareholder OBC also. Long, long road to travel before cruising resumes.

 

Almost any company with a good CFO and fiduciary responsibility should be cutting dividend.

 

Look at the cruise companies, huge debt and cash burn for the ships/crews, yes they are dropping to much less now, but like airlines still have cash burn and serious debt obligations and unlike airlines no business / economical critical component.

 

Forget the dividend, the lines will be the very last thing to be allowed to open!  So no cash flow for a long time, well after airlines, trains, restaurants/bars, sports events and international travel, they all go first before the cruising

 

But I'll be the first to say I'm watching and doing day trades on the dead cat bear sucker rally 😄

 

https://www.fool.com/investing/2020/05/02/nothing-seems-to-go-right-for-carnival-royal-carib.aspx

 

Edited by chipmaster
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bury me at sea

bury me at sea

Posted
Posted

I posted on this thread not long after it was started, to wait to see if the low twenties would hold, and if not, to watch out below for a falling knife.

 

I am neither a day trader nor short on Carnival stock.  However in this economy if things don't turn around soon and drastically, the warning will no longer be "watch out below."  It will be "watch out for the pink sheets."  Day traders and shorts would rejoice.

 

This is not a prediction.  It is simply a personal opinion.  Making a nice gain in the stock market is a fine goal, but as in a poker game, don't bet what you can't afford to lose.

 

I truly hope the cruising industry comes out of this healthy and whole.  I really want to cruise again.

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VentureMan_2000

VentureMan_2000

Posted
Posted

They will keep the Shareholder OBC... it really only costs them between $10 and $50 for a $100 OBC, depending on what the passenger spends on.  Drinks can't cost more than $1 to make but cost $10.  Profit on excursions would be the least profitable.  I would think that Pixels has a huge markup.

 

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coevan

coevan

Posted
Posted
1 hour ago, VentureMan_2000 said:

They will keep the Shareholder OBC... it really only costs them between $10 and $50 for a $100 OBC, depending on what the passenger spends on.  Drinks can't cost more than $1 to make but cost $10.  Profit on excursions would be the least profitable.  I would think that Pixels has a huge markup.

 

 

many people talk about cashing them out in the casino, which i don't think should be allowed. This would create 100% OBC use, not what it was designed for.

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Denverdonkeys

Denverdonkeys

Posted
Posted
2 hours ago, VentureMan_2000 said:

They will keep the Shareholder OBC... it really only costs them between $10 and $50 for a $100 OBC, depending on what the passenger spends on.  Drinks can't cost more than $1 to make but cost $10.  Profit on excursions would be the least profitable.  I would think that Pixels has a huge markup.

 

it says it cant be applied to casino or tips, but they havent shown an ability or desire to stop it so far. i think tips would be 100% loss.

 

but what are the odds the ONLY thing someone spends on their account is tips or casino (Cashing out, not actually playing). most people spend more when they get a little "coupon" which is basically what this is. it's the same thing for why they would throw you $50-$100 OBC when you book. they want you to get into a mindset of spending. when really people just "prepaid" for that.

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EscapeFromConnecticut

EscapeFromConnecticut

Posted
Posted
6 hours ago, chipmaster said:

 

Almost any company with a good CFO and fiduciary responsibility should be cutting dividend.

 

Look at the cruise companies, huge debt and cash burn for the ships/crews, yes they are dropping to much less now, but like airlines still have cash burn and serious debt obligations and unlike airlines no business / economical critical component.

 

Forget the dividend, the lines will be the very last thing to be allowed to open!  So no cash flow for a long time, well after airlines, trains, restaurants/bars, sports events and international travel, they all go first before the cruising

 

But I'll be the first to say I'm watching and doing day trades on the dead cat bear sucker rally 😄

 

https://www.fool.com/investing/2020/05/02/nothing-seems-to-go-right-for-carnival-royal-carib.aspx

 


All true.

 

CCL may have an even tougher journey ahead.
 

The whole industry faces all the obvious mega-challenges of zero revenue, parked ships, newly intensified regulatory scrutiny and a business model that requires a mass market with solid discretionary income. 
 

But beyond that, CCL's lines made the short-term-profit play in February and March to keep sailing until the bitter end ... and well beyond. The income from the trips may prove to be most costly than any stockholders have truly accepted.

 

Lawsuits from lots & lots of passengers, lawsuits from the relatives of dead passengers, a Congressional inquiry in the U.S. and criminal one in Australia ...

all of this means the risk of enormous payouts, of course, but also guarantees at least many more months of horrible headlines.

 

Upcoming is a periodic flurry of survivors' stories coming out ...  new & detailed accounts of onboard misery during protracted quarantine/stranded-at-sea weeks. 
 

This also sets an incredibly high bar for CCL to return any ship to sailing. You could see how Norwegian, for instance, would suffer badly if there's a fresh outbreak when their ships begin cruises again .... the whole industry would be hurt.

    But CCL's short-sighted, greed-fueled decisions of February and March now put it in a class of risk far beyond that. It could not withstand the legal, financial or customer confidence torpedo that would hit if things go south aboard one of its ships.

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Geobugs

Geobugs

Posted
Posted
3 hours ago, EscapeFromConnecticut said:

Lawsuits from lots & lots of passengers, lawsuits from the relatives of dead passengers...

 

https://www.namadr.com/practice-areas/cruise-lines/

 

Binding arbitration is incorporated into passenger ticket contracts for Carnival Cruise Lines, to efficiently and expeditiously resolve passenger claims.

 

NAM is the arbitration administrator for the world’s leading cruise lines. Claims are reviewed and determined by independent, experienced and neutral arbitrators. Comprehensive Dispute Resolution Rules and Procedures provide a fair, impartial and expedient process so that issues will be resolved in a timely fashion.

 

NO juries, no federal court, no big payouts.

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EscapeFromConnecticut

EscapeFromConnecticut

Posted
Posted
7 hours ago, Geobugs said:

 

https://www.namadr.com/practice-areas/cruise-lines/

 

Binding arbitration is incorporated into passenger ticket contracts for Carnival Cruise Lines, to efficiently and expeditiously resolve passenger claims.

 

NAM is the arbitration administrator for the world’s leading cruise lines. Claims are reviewed and determined by independent, experienced and neutral arbitrators. Comprehensive Dispute Resolution Rules and Procedures provide a fair, impartial and expedient process so that issues will be resolved in a timely fashion.

 

NO juries, no federal court, no big payouts.

 

 

That provision has done well by CCL before, but we'll see where litigation goes with this disaster. By this analysis,

Death On the High Seas stands as the strongest defense.

 

https://www.npr.org/sections/coronavirus-live-updates/2020/04/22/840525310/even-with-covid-19-cases-suing-cruise-lines-is-extraordinarily-difficult

 

    Still, this isn't just another isolated fire on a Fantasy-class trio or sewage backup.

 The world may deal with the litigation fallout in new ways.

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NightOne

NightOne

Posted
Posted
4 hours ago, EscapeFromConnecticut said:

 

 

That provision has done well by CCL before, but we'll see where litigation goes with this disaster. By this analysis,

Death On the High Seas stands as the strongest defense.

 

https://www.npr.org/sections/coronavirus-live-updates/2020/04/22/840525310/even-with-covid-19-cases-suing-cruise-lines-is-extraordinarily-difficult

 

    Still, this isn't just another isolated fire on a Fantasy-class trio or sewage backup.

 The world may deal with the litigation fallout in new ways.

 

Literally the CDC is still changing their story on an almost daily basis. How could you hold the cruise lines liable for something they are still trying to figure out?

 

A 2nd year law student could successfully defend against any of these upcoming COVID-19 lawsuits.

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travelhound

travelhound

Posted
Posted (edited)
41 minutes ago, NightOne said:

 

Literally the CDC is still changing their story on an almost daily basis. How could you hold the cruise lines liable for something they are still trying to figure out?

 

A 2nd year law student could successfully defend against any of these upcoming COVID-19 lawsuits.

Good point, Carnival survived the Costa Concordia disaster, which clearly they were responsible for much more liability than the current global pandemic, so I suspect they will survive this crisis.

Edited by travelhound
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