CCL stock downgrade

[JayS]

CCL stock was downgraded from buy to sell by Deutsche Bank.

 

http://www.foxbusiness.com/story/markets/industries/retail/carnival-cut-sell-deutsche-calls-shift/

 

Tomorrow another stock market guru may say buy. :confused:

[LHP]

I would expect all "luxury" company stocks to take a hit.

 

When the economy gets tight...it is the luxuries that go first....

[happy cruzer]

The downgrade is not about what you would assume, here's the details.

 

LONDON -- Cruise operator Carnival was downgraded to sell from buy at Deutsche Bank, with the broker saying a shift in strategy is required. "If we are indeed in an era where oil is around or above $100 a barrel then we believe that the cruise industry needs to rethink its strategy towards substantial shipbuilding programs. We believe that fuel surcharging has no material impact on offsetting this pain. With rising shipbuilding costs exacerbating this issue, we believe that Carnival needs to shift to a returns-driven philosophy, where the group raises cruise prices and reduces commissions," the broker said. However, its $10 billion ship order book means it can't shift to that strategy for at least four years.

 

Very interesting, since NCL put F3 on hold indefinitely.

[roadster08]

Go wade in the mud with the rest of your Wall Street buddies.

 

We are only interested in vacations here!

[scottyo72]

 

Very interesting, since NCL put F3 on hold indefinitely.

 

I hadn't heard that. Do you know something the rest of us don't?

[gtalum]

On the bright side, cruises should get much cheaper in the next year or two. That will be the time to buy CCL stock again. :)

[happy cruzer]

Well, I misstated/exagerated the actual state of the contract talks, but they are serious.

http://www.cruisecritic.com/news/news.cfm?ID=2828

[William W]

However, its $10 billion ship order book means it can't shift to that strategy for at least four years.

 

Wonder when they make this statement, whether they have look into who the ship orders are for. Beside the Dream, the other ships on the book is for brands like Seabourn, Princess and Holland America that already charges a higher rate than Carnival does.

 

I'm bias, as I do own Carnival shares. :)

[Mikel1733]

Go wade in the mud with the rest of your Wall Street buddies.

 

We are only interested in vacations here!

 

FYI many folks here own Carnival stock and are interested in what affects Carnival and its shareholders. You might put a little more thought into your posts before you make #18.