If you want 100 shares of Carnival stock

[MadManOfBethesda]

MadMan,

 

Since you seem so knowledgable, can you please tell me where the best and safest site to purchase stocks from. This is all new to me and I think it would be a great Christmas present to myself.

 

Do you need to purchase 100 all at 1 time or can you buy in increments of 10 or say 50/50?

 

Thanks so very much!!

PG

 

 

I can't really help you with "best" because that can be very subjective. I, myself, have had accounts with Schwab for many, many years and I pay reduced commissions because I am an active trader. As far as "safe" is concerned, you will be safe with any B&M or online broker. Your investments are insured so you don't need to worry about losing money due to the brokerage going out of business. (That doesn't mean that you are insured against losses in your account, only that you are insured from the broker taking your money.)

 

You can buy shares of CCL as little as one share at a time; however, you will pay a commission to whichever firm you set up your account with for each transaction. Stocks are usually bought and sold in round lots of 100, but you can buy 10, 25, or 50 at a time if you so choose. Once you reach 100 shares you will be eligible for the obc.

 

I have to caution you (and others) once again, that this is not a good strategy. Don't consider buying the stock solely for the obc. In addition to the value of your shares depreciating, there is no guarantee that CCL will keep the obc after July 2009.

 

Scott

[PittsburghGirlee]

I can't really help you with "best" because that can be very subjective. I, myself, have had accounts with Schwab for many, many years and I pay reduced commissions because I am an active trader. As far as "safe" is concerned, you will be safe with any B&M or online broker. Your investments are insured so you don't need to worry about losing money due to the brokerage going out of business. (That doesn't mean that you are insured against losses in your account, only that you are insured from the broker taking your money.)

 

You can buy shares of CCL as little as one share at a time; however, you will pay a commission to whichever firm you set up your account with for each transaction. Stocks are usually bought and sold in round lots of 100, but you can buy 10, 25, or 50 at a time if you so choose. Once you reach 100 shares you will be eligible for the obc.

 

I have to caution you (and others) once again, that this is not a good strategy. Don't consider buying the stock solely for the obc. In addition to the value of your shares depreciating, there is no guarantee that CCL will keep the obc after July 2009.

 

Scott

Thank you for you quick response. I understand what you are saying. With the market is such disaray these days, I just thought that buying stock in a company that me and many others in my family use, may be a 1/2 decent idea. The OBC was just a bonus.

Many thanks again Scott,

PG

[MadManOfBethesda]

I just put in a market order for $19.25. I think it's going to hit that this afternoon or tomorrow. Since we have 2 rooms, I'm liking this, if you're willing to ride out the storm.

 

Best regards.

 

As I type this response at 3:47 pm EST, CCL is trading at $19.22, so your purchase should have gone through.

 

Congratulations! (I hope!)

 

Scott

[MadManOfBethesda]

Thank you for you quick response. I understand what you are saying. With the market is such disaray these days, I just thought that buying stock in a company that me and many others in my family use, may be a 1/2 decent idea. The OBC was just a bonus.

 

Many thanks again Scott,

PG

 

Well, if that is the way you feel about the company, and you plan to hold onto the stock for the long-term, then go ahead and begin making your purchases. That's quite different that wanting to buy it just for the obc.

 

In fact, one of the best investors of all time, Peter Lynch, who used to run Fidelity Magellan, was a great believer in that style of investing. That's also why he never got burned by the dot com bust. if he didn't understand what a company was making or selling, he wouldn't buy it.

 

If you want to learn about investing, a couple of good books to start with would be One Up on Wall Street and also Beating the Street, both written by Peter Lynch. They're old, but still relevant.

 

Scott

[DqALEX]

I was away yesterday on business when I got up this morning I saw Carnival CCL selling in the teens. I'm starting to wonder where the bottom is. Is it smart to book a cruise 600 days out now? anything can happen now. RCL was in the 11s

[gtalum]

A low stock price does not indicate any real weakness in the company as much as it indicates a low level of confidence in the stock market as a whole. I'm waiting for CCL to hit $10 then I might buy 100 shares. :)

[nolaAlive]

Rule #1:

Don't come to an Internet cruise board looking for stock advice.

 

Even the real experts disagree all the time and nobody knows when the markets will bottom or recover.

[Mikel1733]

Rule #1:

Don't come to an Internet cruise board looking for stock advice.

 

Even the real experts disagree all the time and nobody knows when the markets will bottom or recover.

 

Rule #2 - Never forget rule #1 :D

[lanoitarus]

Rule #2: Never invest in individual stocks as a private investor and expect to make significant gains. You might, you might not--- its more like gambling than investing. The CCL stock is arguably an exception since if you regularly get the OBC that amounts to essentially a guaranteed 5% dividend on top of regular payouts (which are suspended at the moment anyway). But never, EVER invest money you can't afford to lose outright, because stocks are a fickle mistress even for pros. Any time you catch yourself thinking "Its a great deal at this price", remember that you are thinking contrary to legions of wall street insiders who have immensely more time (its their JOB) and resources (research-wise) than you do to make their decisions with. This isnt to say you CANT win, but the deck is stacked a bit against you.

 

Rule #3: If you are going to ignore #2, do yourself a favor and read A Random Walk Down Wall Street first. Its one of the perennial best laymans guides to the stock market, and it will help to set your expectations straight. Not a bad deal for $12 bucks.http://www.amazon.com/dp/0393330338/

[MD34]

I have read "A random walk down Wall street" and disagreed with pretty much everything in it. Instead, read up on the tactics used by Warren Buffett, John Templeton, and the like.

 

At any given time, one can invest and profit in the market. But you HAVE to do your homework, understand what you are buying, and why. Certainly, there are many stocks that are poor investments, but that does not mean that we all need to run away saying it is nothing more than gambling!

 

Right now, there are many bargains and mis-prices stocks. Once we get through the current mess, and we will, there will be many, many stocks trading much higher than they are today.

 

Don't be scared. Be educated.

 

And do not consider that the OBC is guaranteed - it may not be renewed next year.

[glrounds]

That's probably what the OP thought when he started this thread on October 3rd and stated that 100 shares of CCL would only be $3,274!

 

That's also probably what the people were thinking a couple of weeks ago when it was trading for $2500.

 

And then again just this past Friday, when people were writing that it must be the right time to buy because CCL was at a 52 week low and 100 shares would only be $22.03.

 

And then yesterday it dropped another $118 to close at $2085 for a 100 shares.

 

And as I write this, it has already dropped another $25 in the first 30 minutes of trading.

 

Yeah, I'm sure this is a great time to buy the stock. After all, people will get an OBC of $50 or $100 on their next cruise. What difference does it make if their investment goes into the toilet with the rest of the retail and consumer stocks. :rolleyes:

 

Excellent explanation of that vague position,"The Bottom", the most elusive number that stock traders chase constantly. :D

[DqALEX]

The real danger here is if carnival or RCL stop sailing full. If the stock goes to $10.00 a share with 1/2 full ships look out. I have 2 cruises coming up, one New Years and the other January. I want to see how full the ships are, and if people are spending. If they are I will buy more stock.

[glrounds]

The real danger here is if carnival or RCL stop sailing full. If the stock goes to $10.00 a share with 1/2 full ships look out. I have 2 cruises coming up, one New Years and the other January. I want to see how full the ships are, and if people are spending. If they are I will buy more stock.

 

With all due respect, ALEX, the disadvantage to this method is what's called in statistical circles as INSUFFICIENT SAMPLING.

 

The cruises you take may be an anomaly. They might have something about them that brings MORE CRUISER INTEREST (fuller ship) or MORE AFFLUENT CRUISERS (bigger spenders) than the NORM.

 

Or . . . just the opposite. :D

 

I can understand your interest in observing some of these critical factors in a cruiselines success, but there is much more OBJECTIVE information about CRUISESHIP CAPACITIES and ONBOARD SPENDING.

 

Enjoy your cruises. :)

[DqALEX]

With all due respect, ALEX, the disadvantage to this method is what's called in statistical circles as INSUFFICIENT SAMPLING.

 

The cruises you take may be an anomaly. They might have something about them that brings MORE CRUISER INTEREST (fuller ship) or MORE AFFLUENT CRUISERS (bigger spenders) than the NORM.

 

Or . . . just the opposite. :D

 

I can understand your interest in observing some of these critical factors in a cruiselines success, but there is much more OBJECTIVE information about CRUISESHIP CAPACITIES and ONBOARD SPENDING.

 

Enjoy your cruises. :)

I have seen it also go the other way where things look great on paper and the books are cooked big time. Ex (Emron) I saw a 16 teen year old kid once on TV go to a bagel shop eat the food and invest because it was a very good bagel, and he seen how well the store was doing. He did well with the stock. I feel we have and advantage here because how many companys you or I invest in we can't go see the operations. Every Carnival cruise I have ever been on was full. If I don't see that, I don't think I would go long with that company

[UpstateCruizer]

With all due respect, ALEX, the disadvantage to this method is what's called in statistical circles as INSUFFICIENT SAMPLING.

 

The cruises you take may be an anomaly. They might have something about them that brings MORE CRUISER INTEREST (fuller ship) or MORE AFFLUENT CRUISERS (bigger spenders) than the NORM.

 

Or . . . just the opposite. :D

 

I can understand your interest in observing some of these critical factors in a cruiselines success, but there is much more OBJECTIVE information about CRUISESHIP CAPACITIES and ONBOARD SPENDING.

 

Enjoy your cruises. :)

 

Good point so here's my suggestion Alex....why don't we offer to become full time salaried passengers for Carnival so that we can properly monitor this situation. We can then report back with interested investors with our findings LOL Sounds like one heck of a 401k plan to me. :D

[DqALEX]

Good point so here's my suggestion Alex....why don't we offer to become full time salaried passengers for Carnival so that we can properly monitor this situation. We can then report back with interested investors with our findings LOL Sounds like one heck of a 401k plan to me. :D

I really like that idea A LOT. I told my wife if Carnival ever goes the way of RCL lets sign on and Run the Dairy Queen on the ship. I think a cruise ship could use a DQ. They have a Johnny Rockets on RCL

[greatful]

I have seen it also go the other way where things look great on paper and the books are cooked big time. Ex (Emron) I saw a 16 teen year old kid once on TV go to a bagel shop eat the food and invest because it was a very good bagel, and he seen how well the store was doing. He did well with the stock. I feel we have and advantage here because how many companys you or I invest in we can't go see the operations. Every Carnival cruise I have ever been on was full. If I don't see that, I don't think I would go long with that company

 

All Carnival Cruise Ships are full or close to full because they will do whatever it takes to fill them up. On our cruise they dropped the price weekly after we booked in mid Sept. Prices (Balcony) have now gone back up as they have sold a lot more at the lower prices. Some insides are still going real cheap.

 

Once the cruises are half full they have met most if not all of their fixed costs. It costs them a minimal amount if any for each additional passenger from then on. It is 90% profit at that point.

 

If the economy doesn't improve a lot in the next year Carnival and competitors will suffer if they aren't all ready. Lower oil prices have helped for now. Hopefully they won't skyrocket again

[DqALEX]

I feel you hit the nail right on the head Greatful. The profit is not in the price of the cruise tickets. I think Carnival makes the big money on the drinks, pictures, tours, and casino. With full ships you have a better chance of people spending

[nolaAlive]

And do not consider that the OBC is guaranteed - it may not be renewed next year.

 

It may or may not. It is an incentive to cruise and also to be brand loyal. If anything, I think it might be modified, but not abandoned.

 

RCCL has the same deal.

 

Someone on one roll call recently bought 100 shares @ $20 or so and will be getting $750 in OBC for the Splendor South American cruises. That's a pretty good ROI + they could sell the stock anytime.

 

If looking for a strategy that is working well in this market, you might consider reading a book by Nassim Taleb - The Black Swan: The Impact of the Highly Improbable.

 

http://en.wikipedia.org/wiki/Nassim_Taleb

[calgarygary]

I feel you hit the nail right on the head Greatful. The profit is not in the price of the cruise tickets. I think Carnival makes the big money on the drinks, pictures, tours, and casino. With full ships you have a better chance of people spending

 

The profit may not be directly in the price of the ticket but there is a direct corelation between profit and capacity. Anyone considering buying CCL stock for a onboard credit should give pause and reflect upon some interesting numbers - all before the current crisis. Looking at Carnival Corporation's income statement, the last reportable qtr. ended on Aug 31, income is up 500M over same qtr last year but net income after tax is down 44M. As I have earlier said, CCL is dramatically increasing capacity at the worst possible time and they will have a combination of greatly increased operating costs with ships sailing below capacity. Despite what many on this board may believe, there is a finite target audience for cruising and that market has shrunk due to the current economic situation.

 

When this thread was first opened heralding the great opportunity to purchase stock at a bargain, 100 shares would have cost $3274, when I first posted on this thread, the cost was down to $2188, today only $1894 and frankly, when Carnival announces the next quarter with a combination of high fuel (contract is not yet benefitting from current fuel prices) with lower income, well the picture gets very ugly indeed. When the stock is near or in single digits, that will be an excellent time to buy as all the market and internal forces will have come to bear.

 

BTW - the person who received 750 obc, if it was a stockholder benefit would have to do 3 cruises of at least 14 days for the benefit. Great if you have the time but 42 days of cruising is not within the abilities of the avg. cruiser.

[nolaAlive]

A great quote from Taleb:

 

"My major hobby is teasing people who take themselves and the quality of their knowledge too seriously and those who don’t have the guts to sometimes say: 'I don’t know...."

 

Never trust any stock market advice given on a cruise board.

 

 

-----

 

Retirees and recently unemployed people have a lot more than 42 days off. ;)

[DqALEX]

The profit may not be directly in the price of the ticket but there is a direct corelation between profit and capacity. Anyone considering buying CCL stock for a onboard credit should give pause and reflect upon some interesting numbers - all before the current crisis. Looking at Carnival Corporation's income statement, the last reportable qtr. ended on Aug 31, income is up 500M over same qtr last year but net income after tax is down 44M. As I have earlier said, CCL is dramatically increasing capacity at the worst possible time and they will have a combination of greatly increased operating costs with ships sailing below capacity. Despite what many on this board may believe, there is a finite target audience for cruising and that market has shrunk due to the current economic situation.

 

When this thread was first opened heralding the great opportunity to purchase stock at a bargain, 100 shares would have cost $3274, when I first posted on this thread, the cost was down to $2188, today only $1894 and frankly, when Carnival announces the next quarter with a combination of high fuel (contract is not yet benefitting from current fuel prices) with lower income, well the picture gets very ugly indeed. When the stock is near or in single digits, that will be an excellent time to buy as all the market and internal forces will have come to bear.

 

BTW - the person who received 750 obc, if it was a stockholder benefit would have to do 3 cruises of at least 14 days for the benefit. Great if you have the time but 42 days of cruising is not within the abilities of the avg. cruiser.

I understand what you are saying, but if Carnival goes into the single digits I would be very careful. I once bought many years ago Kmart. I bought in the single digits. Kmart fell to around .25c. What the company did than was to re-issue stock under another symbol, trade with the new symbol. I still own the first symbol KM and its worthless. Today the market went up 500 points and Carnival went up .80c Thats not good

[DGP1111]

If anything, I think it might be modified, but not abandoned.

 

'Rumor' has it that one particular modification is almost assured. Would not affect the majority, but would be a slap to some who've already become accustomed to that Carnival slap.

[ Bill, I'm going to offer you a less cryptic message through your site. ]

Have a great upcoming weekend, all. I've got a hot date with Miz Splendor that I don't want to be late for. :) :)

[DG2004]

I understand what you are saying, but if Carnival goes into the single digits I would be very careful. I once bought many years ago Kmart. I bought in the single digits. Kmart fell to around .25c. What the company did than was to re-issue stock under another symbol, trade with the new symbol. I still own the first symbol KM and its worthless. Today the market went up 500 points and Carnival went up .80c Thats not good

 

 

or you could say up 6.67% vs. up 4.26%

[gtalum]

I understand what you are saying, but if Carnival goes into the single digits I would be very careful. I once bought many years ago Kmart. I bought in the single digits. Kmart fell to around .25c. What the company did than was to re-issue stock under another symbol, trade with the new symbol. I still own the first symbol KM and its worthless.

 

That's a bankruptcy case, and you're right, you should be leery of companies on the verge of bankruptcy because your shares would become worthless or nearly so. That said, stock price alone is not an indicator of bankruptcy. A better indicator is cash reserves and forecast income. Carnival has good cash reserves and for the most part ships are still booking well, though likely at much lower fares. CCL also has very astute management, so I wouldn't worry about them going under anytime soon. They'll likely end up grabbing up serious market share and maybe even picking up another cruise line or two from the wreckage.

 

Today the market went up 500 points and Carnival went up .80c Thats not good

 

Absolute increases are meaningless. You have to look at the percentages. Carnival's stock price increased just slightly less than the market as a whole did. CCL sells a luxury product, so they're very likely to take some losses in the short term, which accounts for the below average performance yesterday. From another perspective, though, we all know that cruising is a good deal financially, so they may be able to sell more than you'd think based on the value of the product compared to other vacations.

 

Beware, there are more market losses coming, though, as yesterday was almost certainly just another meaningless market bounce.