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When will Carnival shares be worth buying ?

Cruisemeister2002

By Cruisemeister2002,
in P&O Cruises ( UK )

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Plugtheleak

Plugtheleak

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They could just increase the number of shares required to be owned and leave the OBC at the same rates. If they increased the requirement to 200 shares this would mean some of us purchase another 100 shares and would in effect bring in some much needed money.

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Harry Peterson

Harry Peterson

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9 minutes ago, Plugtheleak said:

They could just increase the number of shares required to be owned and leave the OBC at the same rates. If they increased the requirement to 200 shares this would mean some of us purchase another 100 shares and would in effect bring in some much needed money.

They might well do that, but unless they linked it with a rights issue (which they might well do)  it wouldn't actually bring in any new money to the company.

 

Not sure that a rights issue would go well in the current climate though!

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Cruisemeister2002

Cruisemeister2002

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On 6/14/2022 at 7:26 PM, devonuk said:

My daughter bought 100 at £7.25 each today 😎

Bought 100 yesterday 16/06 at £6.99. Couldn't resist in the end as we have two cruises booked next year so £300 worth of OBC for an outlay of just over £700 including fees.

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majortom10

majortom10

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I have had 100 shares in Carnival since 2011 and think I paid around the £20 per share mark so at todays price probably about £1300 down but have had much more value in OBC and dividends in the last 11yrs in the number of cruises I have done which far outweighs the £1300 current loss. I am now in a position that even though I will not get any extra benefits from any extra shares only dividends when they return whether or not to purchase more as a hopeful investment. I know it is a gamble but isnt that the risk when purchasing any shares and with interest rates being so low wonder if I have the courage to purchase more.

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bbtablet

bbtablet

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Plugtheleak - as Harry has also referenced, when you buy shares you are buying them from someone else, an existing shareholder, who is selling them.

Only the purchaser who bought them from the company when the shares were first issued is paying money to the company. The company gets that one-off payment for which it issues the share certificate and thereafter the market in the shares is effectively a second-hand market.

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Plugtheleak

Plugtheleak

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8 hours ago, bbtablet said:

Plugtheleak - as Harry has also referenced, when you buy shares you are buying them from someone else, an existing shareholder, who is selling them.

Only the purchaser who bought them from the company when the shares were first issued is paying money to the company. The company gets that one-off payment for which it issues the share certificate and thereafter the market in the shares is effectively a second-hand market.

Thank you to both you and Harry for educating me. However if they created demand by increasing the number of shares needed. If there was suddenly a increase in buying would this not push the share price up potentially and with it the value of the business? I bought mine on March the 19th 2020 so when they were also at a very attractive price so I thought, I've already had about 400 pounds in OBS so for me it has so far been a good move. I have actually been a regular reader of this site for many years. There are some fantastic people keeping us educated and amused. Thank you to all of you

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Harry Peterson

Harry Peterson

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13 minutes ago, Plugtheleak said:

Thank you to both you and Harry for educating me. However if they created demand by increasing the number of shares needed. If there was suddenly a increase in buying would this not push the share price up potentially and with it the value of the business? I bought mine on March the 19th 2020 so when they were also at a very attractive price so I thought, I've already had about 400 pounds in OBS so for me it has so far been a good move. I have actually been a regular reader of this site for many years. There are some fantastic people keeping us educated and amused. Thank you to all of you

I’m afraid it doesn’t work that way. The share price reflects the perception of the value of the company, but doesn’t change it. Carnival could issue new shares to raise capital, often done via a rights issue to existing shareholders, but that obviously depends on people buying them, and as things stand buyers might be thin on the ground.

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wowzz

wowzz

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2 minutes ago, Harry Peterson said:

I’m afraid it doesn’t work that way. The share price reflects the perception of the value of the company, but doesn’t change it. Carnival could issue new shares to raise capital, often done via a rights issue to existing shareholders, but that obviously depends on people buying them, and as things stand buyers might be thin on the ground.

And a rights issue woukd adversely affect the value of the existing shares out there, which would seriously displease the major share holders. 

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zap99

zap99

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18 hours ago, Bazrat said:

Just bit the bullet bought some at £6.51 is that a good price 😁

That's nearly my target price to purchase some. Only another £6.50 to fall and I will pile in.

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Host Hattie

Host Hattie

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48 minutes ago, PRINCESSTHE BEST said:

Analysts at Berenberg have reiterated their 16p price for Carnival stating the group's recovery was "beyond the horizon".

Do you have a link to that statement ?

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JDB78

JDB78

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5 hours ago, PRINCESSTHE BEST said:

https://seekingalpha.com/article/4515978-carnival-enormous-risk-for-lt-common-stockholders

 

I dont think you will find anyone who is suggesting Carnival is in a great position right now. Personally, I believe everyone just has to make their own choice.

 

The OBC factor comes into play more now the shares are a lot lower. Previously you may have had to pay 3-4k just to get the £150 obc. Now it's less than 1,000 so very attractive as long as the company stays afloat and keeps the benefits as they are.

 

People also can get quite attached to companies like P&O so owning shares in them may also feel a bit more personal than owning shares in an oil company or investment fund or something like that.

 

Feel really sorry for people who have lost a lot of money, but at the end of the day, the company is still going and hopefully things will change over time

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Harry Peterson

Harry Peterson

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42 minutes ago, JDB78 said:

 

I dont think you will find anyone who is suggesting Carnival is in a great position right now. Personally, I believe everyone just has to make their own choice.

 

The OBC factor comes into play more now the shares are a lot lower. Previously you may have had to pay 3-4k just to get the £150 obc. Now it's less than 1,000 so very attractive as long as the company stays afloat and keeps the benefits as they are.

 

People also can get quite attached to companies like P&O so owning shares in them may also feel a bit more personal than owning shares in an oil company or investment fund or something like that.

 

Feel really sorry for people who have lost a lot of money, but at the end of the day, the company is still going and hopefully things will change over time

I've lost a pretty sizeable chunk of money on these shares, having very stupidly bought them primarily for the OBC.  My loss, my fault, and I'm certainly not complaining - just observing.

 

Logically I should sell now - I think there's a fair chance they'll ultimately be worthless.  The OBC still tips the balance and prevents me from taking the logical step, but mentally and financially I've long since written them off altogether.  If I depended on the sale proceeds, I'd definitely sell now.

 

The company will doubtless continue in some shape or form, but it will be the ordinary shareholders that lose out, and probably lose all or most of their investment.  Anyone who took a punt on Eurotunnel shares back in the day will know exactly what I mean.

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PRINCESSTHE BEST

PRINCESSTHE BEST

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The reason I posted those links was just to highlight the risks with buying at the moment. I could see that quite a few of the posters are being drawn in by the rapid decline of the share price. I bought my 100 shares about 12 years ago for £1700. Since that time I saw them climb to £55 a share. However I kept them for the dividends and OBC. Like many others I have probably got my money back, and with further cruises in the pipeline will continue to benefit. It will probably be a different story for people who buy them at the moment. Shareholding has always been and will always be a risk, so it is up to each individual to make their own decisions. 

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ALWAYS CRUZIN

ALWAYS CRUZIN

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On 6/10/2022 at 5:03 AM, Cruisemeister2002 said:

Hi All, hope you are keeping shipshape ? Just looked at the price of Carnival shares, down to just above £8.50. When or if do they become worth buying. They have I believe about $6 billion dollars, but debts of $30 billion, some I believe at repayment of 10% interest. Are they seriously in danger of being cast adrift by way of bankruptcy ? Whilst many like myself look forward to the day when cruising is back to normal that doesn't by reports on this forum look like anytime soon and the longer that crew shortages, wearing of masks, having to spend too much time messing about with Apps to book theatre shows and restaurants the more it will put some off. At the same time you have the added pressure of the costs of running these ships and the fact that many are finding less in their pockets due to inflation. A perfect storm perhaps ?

Even if it goes lower. To buy now gets you a very good chance of making some nice profit down the road. Plus the OBC you get on Carnival and Princess. I have a lot of carnival and Royal. I am down currently $30k. Over the past years I have done very well. Basically the money I am down is less than what I have done over the years. However I bet it will climb next year when our economy looks far better. remember, I am still getting the OBC. Taking a 14 day soon on Princess. That gets me $250.00 OBC and I am a vet so another $250.00 OBC 

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