Did Carnival Corp Just Offer Another Billion??

[4hunters]

I guess they need to start making their huge interest-heavy payments. 🙃

 

“Shares of Carnival Corp. CCL tumbled 11.2% in morning trading Thursday, to pace the S&P 500's SPX after the cruise operator caused investors to "panic" with its $1 billion public equity offering.”

[TwoAdriftAtSea]

Hopefullly they offer dividends once again, I dumped 1/4 of my ccl holdings this morning (at a loss) but thats what write offs are for.

[Stick93]

20 minutes ago, TwoAdriftAtSea said:

Hopefullly they offer dividends once again, I dumped 1/4 of my ccl holdings this morning (at a loss) but thats what write offs are for.

Jerry - it’s a write off. 
 

what’s a write off???

 

I don’t know but everyone does it. 

[mz-s]

2 minutes ago, Stick93 said:

Jerry - it’s a write off. 
 

what’s a write off???

 

I don’t know but everyone does it. 

 

I don't know, but they do - and they're the ones writing it off!

[tidecat]

13 minutes ago, TwoAdriftAtSea said:

Hopefullly they offer dividends once again, I dumped 1/4 of my ccl holdings this morning (at a loss) but thats what write offs are for.

I would not realistically expect a dividend before 2027, possibly even later. Historically Carnival carried around $15-$18 of debt on its balance sheet. Carnival needs to ratchet that down from around $35 Billion.

 

Basically the stock offering proceeds are going straight to debt. Even if Carnival makes $3 Billion/year going forward, it's going to take 4-5 years, and possibly more stock offerings, to get the company's position to anything resembling what it was pre-pandemic 

[4hunters]

11 minutes ago, Stick93 said:

Jerry - it’s a write off. 
 

what’s a write off???

 

I don’t know but everyone does it. 

 

9 minutes ago, mz-s said:

 

I don't know, but they do - and they're the ones writing it off!

Best TV show ever. Thanks for the afternoon laugh. 😊

Edited July 21, 2022 by 4hunters
Spelling

[Lane Hog]

[Gains] - [Losses] = [Taxable Gains]
 

Edited July 21, 2022 by Lane Hog

[Moviela]

Issuing stock is a good move. Yes it dilutes other shareowners but it gives them cash when cash flow from operations is reduced. Money taken today is worth more than dollars in the future, and the way inflation is going future dollars will be worth a lot less. A lot.I know, let's blame Putin. Yeah, that's it.

[Purvis1231]

We may still have Royal Carnival within the next few years. 

[BoozinCroozin]

CCL is $30B in debt. There will be no dividends for many years. Dumping another 100M shares just cost us 12%. It showed signs of recovery then through this fly brown mess out there. Would have been far better to get the stock to $13 instead of pumping out 100M more shares.

 

They need to stop adding on to the debt by buying new ships. They need to start tackling it very quickly. $30B even at 3% is almost $1B just in interest. Paying it down $3B/yr will take 10+ years to get to a normal debt. Do you really think they will stop building/buying ships? The only way to tackle it is increase revenue, decrease expenses, and dilute shares. 

Edited July 22, 2022 by BoozinCroozin

[ray98]

I don't know if Carnival makes it out of this.  $36B in debt and still losing $20M as recent as the end of last quarter.

[Lee Cruiser]

5 hours ago, BoozinCroozin said:

They need to stop adding on to the debt by buying new ships. They need to start tackling it very quickly.

Agreed, they have to tackle the debt, but to my knowledge they haven't ordered any more new ships.  The ships that are coming were already under contract before Covid.

[Badfinger]

16 hours ago, Stick93 said:

Jerry - it’s a write off. 
 

what’s a write off???

 

I don’t know but everyone does it. 

 

Or to put another way, you lose $1 on a  stock, and you get "save" 15 cents on your taxes.  Still lose 0.85.  Write offs sound great...but they are bad for the average joe investor.

[ontheweb]

17 hours ago, 4hunters said:

 

Best TV show ever. Thanks for the afternoon laugh. 😊

I saw Jerry's picture (though he was listed as Jerome) with his hair down to almost the middle of his back in my DW's high school senior year yearbook. I would like to know if he is supposed to be so cool, why he did not know the prettiest girl in his graduating class (a very large class, BTW.)

[4hunters]

31 minutes ago, ontheweb said:

I saw Jerry's picture (though he was listed as Jerome) with his hair down to almost the middle of his back in my DW's high school senior year yearbook. I would like to know if he is supposed to be so cool, why he did not know the prettiest girl in his graduating class (a very large class, BTW.)

Haha!  Yeah, I bet he was a total nerd in school. That’s neat though that your DW went to school with him. Also, it’s hard to picture him with long hair!

 

Edit:  if it’s not too much trouble you should post his pic from the yearbook. 

Edited July 22, 2022 by 4hunters

[Stick93]

4 hours ago, Badfinger said:

 

Or to put another way, you lose $1 on a  stock, and you get "save" 15 cents on your taxes.  Still lose 0.85.  Write offs sound great...but they are bad for the average joe investor.

I am not an accountant but I believe investment write-offs when balances against investment gains are actually weighted heavier than the 15%. A loss can wipe out a gain and vice versa. This is why people carry losses and can carry them for 20 years. 

I believe the loss you are talking about is an expense - which for the average shmo is prob a 15% per dollar save in taxes of the amount expensed. 

[ontheweb]

3 hours ago, 4hunters said:

Haha!  Yeah, I bet he was a total nerd in school. That’s neat though that your DW went to school with him. Also, it’s hard to picture him with long hair!

 

Edit:  if it’s not too much trouble you should post his pic from the yearbook. 

Sorry, I don't have it. We were in my late Mother in Law's house. And Jerry was on the Barbara Walter's show. He said his age, and our son said he must have gone to school with you. She said no, but then found her old yearbook in the closet, and there he was.

[4hunters]

20 minutes ago, ontheweb said:

Sorry, I don't have it. We were in my late Mother in Law's house. And Jerry was on the Barbara Walter's show. He said his age, and our son said he must have gone to school with you. She said no, but then found her old yearbook in the closet, and there he was.

Small world, indeed!  And no worries about the pic. Thanks anyhow. 👍🏻

[Badfinger]

3 hours ago, Stick93 said:

I am not an accountant but I believe investment write-offs when balances against investment gains are actually weighted heavier than the 15%. A loss can wipe out a gain and vice versa. This is why people carry losses and can carry them for 20 years. 

I believe the loss you are talking about is an expense - which for the average shmo is prob a 15% per dollar save in taxes of the amount expensed. 

I guess it depends. If it balances against a LTCG, then 15%.  Even if one is a billionaire, the top tax bracket is 37%...so lose a dollar, save 37 cents is the best case scenario.  But yeah sometimes it is still the best financial decision.   But best does not mean it is a good thing.

[ontheweb]

23 hours ago, 4hunters said:

Small world, indeed!  And no worries about the pic. Thanks anyhow. 👍🏻

I don't think anyone has managed to digitalize old yearbooks, but just in case they did. Jerry (er, Jerome) Seinfeld graduated from Massapequa High School in 1972. (Just in case, there is more than one Massapequa High School, this is in NY State.

[4hunters]

Found it - thanks for the info! 

[ontheweb]

19 hours ago, 4hunters said:

Found it - thanks for the info! 

Glad that worked out. He is sort of goofy looking.

[pcpackrat]

Loosely related, how long does it take them to apply on board credit for being a shareholder. I sent them information by fax and emailed them two weeks ago and they have not responded to either.

[tidecat]

5 hours ago, pcpackrat said:

Loosely related, how long does it take them to apply on board credit for being a shareholder. I sent them information by fax and emailed them two weeks ago and they have not responded to either.

It may be close to three weeks. I submitted mine 22 days before my cruise earlier this year, and it did not post until a few days before embarkation.