Carnival offers common stock

[jimbo5544]

https://www.cruiseindustrynews.com/cruise-news/22709-carnival-corporation-announces-offering-of-common-stock.html

[bury me at sea]

I am no expert but in my opinion this is worse news than suspending the dividends.  

[TAIC1234]

What can we expect this to do to the current stock price? I assume it would bring it down; more outstanding shares???

[bury me at sea]

5 minutes ago, TAIC1234 said:

What can we expect this to do to the current stock price? I assume it would bring it down; more outstanding shares???

 

That is my expectation, near term.  Long term, shares of current stockholders permanently diluted.

 

Depending on the terms and conditions of the secured notes, if reorganization is necessary, common stock owners (already in a precarious position) have even another level of creditors ahead of them.

 

Just my opinion.

[CRocks]

I think you'll find this is Carnival PLC (ticker CUK) rather than Carnival Cruise Line ( ticker CCL) most people here hold for cruise credit. 

[Honolulu Blue]

47 minutes ago, bury me at sea said:

I am no expert but in my opinion this is worse news than suspending the dividends.  

 

I agree with you, mostly for the reasons you already mentioned.

 

I wonder if they're going to use the new notes to fund current operations or pay off notes coming sooner.

[bury me at sea]

16 minutes ago, CRocks said:

I think you'll find this is Carnival PLC (ticker CUK) rather than Carnival Cruise Line ( ticker CCL) most people here hold for cruise credit. 

 

Today's article in Market Watch refers to Carnical CCL.  That's all I know!

[lottiegreen56]

Jimbo -  we've only invested semi-seriously in carnival off and on since 2016, with a couple trades before that. Do you remember off hand if they have done buy backs or what the history of the dividend has been? I knew this information at some point but it's not in my recall right now and I am not seeing what I want on bloomberg research.

[CRocks]

20 minutes ago, bury me at sea said:

 

Today's article in Market Watch refers to Carnical CCL.  That's all I know!

 

No, it says "Carnival Corporation today announced that it has commenced an underwritten public offering of $1.25 billion of shares of common stock of the Corporation, according to a statement.". https://www.cruiseindustrynews.com/cruise-news/22709-carnival-corporation-announces-offering-of-common-stock.html

 

CCL is the American issue traded on the NYSE while CUK is the UK version traded on the NYSE as an ADR. https://finance.yahoo.com/news/carnival-corporation-plc-announces-offering-111800967.html

 

Edited March 31, 2020 by CRocks

[john91498]

Not sure why everyone is surprised. This was announced last week.

[easykruz]

THIS is really good news, because Carnival will be in a better position when all this is over.  And we will continue to enjoy cruising again.

[Roger88]

The stocks are down at the moment. I you were waiting for a moment to purchase them, its the best time to do it. Trust me, the longer you wait, the more you will lose if you miss on buying them right now. I wish I had some savings that I could use to buy shares..dreams, big dreams

[john91498]

The stock (CCL) is up 12%

[TAIC1234]

I've got a limit order for $10 per share but now I'm wondering if I should lower down to $7 or $8????

[Eli_6]

CCL dropped briefly to $10.95 this morning but now is back up to $13.17. The lowest I have seen it is $8-9.  

 

It has been around $40-50 for 5 years. 

 

The only way you are long-term losing money at these prices is if CCL declares bankruptcy.  

Edited March 31, 2020 by Eli_6

[Joebucks]

7 hours ago, Roger88 said:

The stocks are down at the moment. I you were waiting for a moment to purchase them, its the best time to do it. Trust me, the longer you wait, the more you will lose if you miss on buying them right now. I wish I had some savings that I could use to buy shares..dreams, big dreams

 

You might be right, you might be wrong. I'd like to think you are right though. However, there certainly are plausible scenarios that could make this a bad buy.

[jimbo5544]

4 hours ago, Eli_6 said:

CCL dropped briefly to $10.95 this morning but now is back up to $13.17. The lowest I have seen it is $8-9.  

 

It has been around $40-50 for 5 years. 

 

The only way you are long-term losing money at these prices is if CCL declares bankruptcy.  

I am not sure past performance means anything to any cruise line stock anymore.  I will take YEARS to recover to a semblance of what they were 6 months ago, if at all.

[jimbo5544]

12 hours ago, bury me at sea said:

I am no expert but in my opinion this is worse news than suspending the dividends.  

It is a way to get CASH

11 hours ago, lottiegreen56 said:

Jimbo -  we've only invested semi-seriously in carnival off and on since 2016, with a couple trades before that. Do you remember off hand if they have done buy backs or what the history of the dividend has been? I knew this information at some point but it's not in my recall right now and I am not seeing what I want on bloomberg research.

I cannot recall them ever doing this, they were always cash solvent and for a long long time did not borrow to build ships.

[jimbo5544]

11 hours ago, Honolulu Blue said:

 

I agree with you, mostly for the reasons you already mentioned.

 

I wonder if they're going to use the new notes to fund current operations or pay off notes coming sooner.

Offset revenue loss for a good period of time, would be my guess. 

[sanmarcosman]

https://www.cnn.com/2020/04/01/business/carnival-cruise-debt-coronavirus/index.html

[wikoffclan]

7 hours ago, Eli_6 said:

CCL dropped briefly to $10.95 this morning but now is back up to $13.17. The lowest I have seen it is $8-9.  

 

It has been around $40-50 for 5 years. 

The only way you are long-term losing money at these prices is if CCL declares bankruptcy.  

 

Bought 100 shares at $15/share a few days ago. It's hovering in that range. Will probably go lower. But for $1500, the Shareholder cruise credit, the potential dividend and the long term growth.... seems like a small investment in a company worth taking a gamble on.

[foggyphils]

10 hours ago, TAIC1234 said:

I've got a limit order for $10 per share but now I'm wondering if I should lower down to $7 or $8????

Per recommendation by our EJ guy (for what that is worth), we have a limit order at $7. 

[MRVEGAS711]

I see Carnival seeking protection from its creditors. If my September cruise cancels, which, is likely, I'll take at total refund so I don't lose $1400+

[thesmiths]

34 minutes ago, MRVEGAS711 said:

I see Carnival seeking protection from its creditors. If my September cruise cancels, which, is likely, I'll take at total refund so I don't lose $1400+

 

I took the FULL refund on my May 2nd cruise to re-coop some of my loss from owning 200 Shares.

If my Sept Cruise is cancelled I will take the full refund again.

 

 

 

 

 

 

 

 

 

 

[PaulieG13]

I bought 100 shares of CUK 12 days ago at $9.  I had a limit order in to buy again at $10 but looking at it drop this morning, I pushed that limit order down to $8.

 

For the OBC alone, it is worth it at that price to me. It may take a while, but i feel the shares will get back to at least $30 at some point. Then I could sell off excess and still keep 100 shares for OBC. 

 

Hoping that Carnival doesn't stop offering that benefit!