Carnival Corp Shareholder Benifit Ended?

[UncleInci]

I've been watching carnival's stock steadily drop and it's now in the zone I've been thinking of picking some up. I've also read about the shareholder's benefit and thought that would also make a nice perk. However, according the the corporate website, in order to get the benefit, you had to book by Feb 28 and sail by July 31 this year.

 

http://library.corporate-ir.net/library/14/140/140690/items/287713/Carn_Benefit.pdf

 

So, is this perk now dead? Any current stock holders care to comment?

[aggieastrosfan]

Never owned stock, but I do believe it was a renewable benefit - just because it was showing up as ending, doesn't mean it wouldn't be picked up for the following year.

 

Of course, all bets are off in this economy. If there was ever a year to stop it, even temporarily, this would be it.

[rkacruiser]

The statement that you read about the benefit ending on a certain date and one had to sail by a certain date is the same type of statement that Carnival has had in their annual report for many years. The Benefit has always been renewed. I do not know what they will do for 2009-2010, but I would be surprised if it was canceled.

 

While the Shareholder Benefit is a nice "tax-free dividend" of owning CCL stock, one should not buy the stock just for that reason.

 

I have attended one of their Shareholder meetings and I was very favorably impressed by the quality of their management. I think Mr. Arison and his colleagues know what they are doing!

[UncleInci]

While the Shareholder Benefit is a nice "tax-free dividend" of owning CCL stock, one should not buy the stock just for that reason.

 

I agree, which is why I referred to it as a "perk".

 

While researching this earlier I do not remember seeing the cut off dates. By your comments, I must of over looked them.

[LRene]

The shareholder credit has always had an end date of July 31 each year. If you requested the OBC in say, January, for a cruise after 7/31 you had to wait and request it again after the new benefit was determined for sail dates after 7/31.

 

I believe (someone correct me if I'm wrong) that the annual meeting is in April each year which is when the benefit is decided upon.

[Minoushka]

Ihope they do not do away with the perk .We no longer get dividends so what is left???

I enjoyed my OBC and look forward to many more .If they drop it I will sell my stock because there will be no point in keeping it

[rkacruiser]

Ihope they do not do away with the perk .We no longer get dividends so what is left???

I enjoyed my OBC and look forward to many more .If they drop it I will sell my stock because there will be no point in keeping it

 

I strongly disagree with your conclusion. The ending of the dividend for 2009, pending future review by the Board, is designed to preserve cash that can be used to offset the capital expenses that will be incurred during 2009, i.e. expenses for new shipbuilding and/or refurbishments of existing vessels of the Carnival Coproration fleet. While no one likes loosing their dividend payment, from a Company standpoint, it strengthens our Company by allowing them to use revenue generated from within and not having to depend upon obtaining capital from our now extremely weakened banking system and paying interest on those funds.

 

Carnival Corporation is a well managed company. Yes, it's current stock price is most disappointing. But, there are so many other companies whose shares are truly cheap in comparison to the value of their assets and brand name.

 

Selling your shares now will only help to drive the price per share down further. (Maybe I ought to buy more!)

[UncleInci]

Carnival Corporation is a well managed company. Yes, it's current stock price is most disappointing. But, there are so many other companies whose shares are truly cheap in comparison to the value of their assets and brand name.

 

Selling your shares now will only help to drive the price per share down further. (Maybe I ought to buy more!)

 

This is exactly why I'm looking at CCL, I think it has good long term potential and it is near the price I'm willing to buy. I'd also guess that once they reinstate the divedend the stock will rise some more as income investors move back in. The OBC is just an interesting quirk, and not the reason I'd buy CCL.

[kansas kruiser]

This is exactly why I'm looking at CCL, I think it has good long term potential and it is near the price I'm willing to buy. I'd also guess that once they reinstate the divedend the stock will rise some more as income investors move back in. The OBC is just an interesting quirk, and not the reason I'd buy CCL.

 

:cool: I bought my 100 shares in Nov. for $15.27. The OBC was already being discussed about taking away, but I thought it was still a good investment!! Heck RCL is going for about $5.50 today!:eek: Thinking about jumping on that!:rolleyes:

[dlhamlten]

The shareholder credit has always had an end date of July 31 each year. If you requested the OBC in say, January, for a cruise after 7/31 you had to wait and request it again after the new benefit was determined for sail dates after 7/31.

 

I believe (someone correct me if I'm wrong) that the annual meeting is in April each year which is when the benefit is decided upon.

 

 

 

According to SEC Filings, this years' Carnival Corporation Annual Meeting is Scheduled for April 15, 2009 and will be held in the UK. Normally, the Shareholder Benefit would be an item that the Board of Directors must approve and they usually vote in accordance with Management's recommendation. They will obviously have information about how costly and beneficial Management believes the Shareholder Benefit is to business. It must be renewed annually for the upcoming year which would be from July 31, 2009 thru July 2010.

 

Best advice --- Check this website after the Meeting:

 

 

http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-sharebenefit

 

In this economy,:( I would be surprised if the Benefit was not renewed, but who knows.......

[thesmiths]

:cool: Heck RCL is going for about $5.50 today!:eek: Thinking about jumping on that!:rolleyes:

 

I was looking at RCL for a while....

Bought it at 15, then again at 12 then again at 9, one day it jumped back up to 15...sold:eek::D

[Litewait]

Is Carnival selling for right now?? I think you have to buy 100 shares to get the OBC correct?

 

Thanks for the info!

[dlhamlten]

Is Carnival selling for right now?? I think you have to buy 100 shares to get the OBC correct?

 

Thanks for the info!

 

 

100 shares is the minimum. It just traded @ $ 17.86 per share, so $1,786 + Commission will get you the Benefit.

[UncleInci]

100 shares is the minimum. It just traded @ $ 17.86 per share, so $1,786 + Commission will get you the Benefit.

 

Yeah, when I wolk up this morning and saw it under $18, I decided to jump in. Here's hoping I revisit this thread in a year or two and can pat myself on the back for a decision that was well made! And if not, who cares, we needed to invest some monies in my wifes IRA anyways! :)

[tnt091605]

I strongly disagree with your conclusion. The ending of the dividend for 2009, pending future review by the Board, is designed to preserve cash that can be used to offset the capital expenses that will be incurred during 2009, i.e. expenses for new shipbuilding and/or refurbishments of existing vessels of the Carnival Coproration fleet. While no one likes loosing their dividend payment, from a Company standpoint, it strengthens our Company by allowing them to use revenue generated from within and not having to depend upon obtaining capital from our now extremely weakened banking system and paying interest on those funds.

 

Carnival Corporation is a well managed company. Yes, it's current stock price is most disappointing. But, there are so many other companies whose shares are truly cheap in comparison to the value of their assets and brand name.

 

Selling your shares now will only help to drive the price per share down further. (Maybe I ought to buy more!)

 

Great information, thanks.

[Hurry&Wait]

:cool: I bought my 100 shares in Nov. for $15.27. The OBC was already being discussed about taking away, but I thought it was still a good investment!! Heck RCL is going for about $5.50 today!:eek: Thinking about jumping on that!:rolleyes:

 

 

Watch out for RCL stock. Look at their debt load in 2009 and 2010:eek::eek:

It is very high and with new ships coming into service:confused:

 

There are reasons why that stock is $5.50.

[MadManOfBethesda]

Watch out for RCL stock. Look at their debt load in 2009 and 2010:eek::eek:

It is very high and with new ships coming into service:confused:

 

There are reasons why that stock is $5.50.

 

I don't think that I would buy any leisure or entertainment company stock right now. Even Las Vegas, which was thought to be recession-proof, is having problems with all the large casino companies losing money and laying off people.

 

And Atlantic City is worse! Trump's AC hotels have filed for Chapter 11 bankruptcy protection.

 

While I don't envision CCL going out of business, I don't necessarily think that $18 is a screaming buy either. (But then again, I never envisioned Lehman Brothers & Bear Stearns going out of business either!)

[brilliantseas]

Watch out for RCL stock. Look at their debt load in 2009 and 2010:eek::eek:

It is very high and with new ships coming into service:confused:

 

There are reasons why that stock is $5.50.

 

That is if they even take delivery of their new ships. Things are bad enough for RCCL and the credit markets that they officially disclosed that they may not be able to take delivery of one or both of the ships due to their lower credit rating and the cost and availability of capital.

 

$2.4+ billion is a lot to try to finance these days, especially for a company that doesn't have an A credit rating.

[nancychic]

How much is the OBC if you own stock?

[brilliantseas]

How much is the OBC if you own stock?

 

It varies based on the length of your cruise. Currently, for North American brands (Carnival, Princess, HAL, Seabourn, Cunard), the OBC for cruises before July 31, 2009 are as follows:

 

6-nights or less = $50 per stateroom

7-13 nights = $100 per stateroom

14+ nights = $250 per stateroom

 

It is valid with most fare codes, although it is not valid on military, travel agent or interline rates and certain other restrictions apply.

[MadManOfBethesda]

Yeah, when I wolk up this morning and saw it under $18, I decided to jump in.

 

There was a thread on this subject back in September where someone posted that CCL was a great buy because it had just dropped below $40 and he wanted that $100 obc.

 

There were more posts from people a short while later from people claiming that now was the time to buy because CCL had dropped below $35.

 

And then it dropped below $30..............

 

And then it dropped below $25...............

 

Well, at this point people said it couldn't go much lower and that this definitely was a great time to buy!

 

And then it dropped below $20..................

 

Do you see a pattern here?

 

There is an old Wall Street saying that you don't want to try to catch a falling knife.

 

I'm afraid that quite a few Carnival cruisers have sustained multiple knife wounds trying to acquire a $50 or $100 obc.

[ooulio]

We just came back from a 8 day cruise on Carnival Freedom. We got the $100.00 OBC. The ship was sold out as usual. I think it will eventually go back up. I enjoy my $100.00. I am not selling my stock. One day it will be worth money. All the stocks are in the toilet. My blue chip is down the toilet and I paid $38.00 a share . Now it is worth $8.00. Can't sell it because that is stupid. Maybe by the time I retire, it will go up. I still think Carnival stock is a good deal. People are still taking vacations even in this economy.

[Cruzman]

It is valid with most fare codes, although it is not valid on military, travel agent or interline rates and certain other restrictions apply.

 

Not true! I'm booked on the Legend using the military rate and my shareholder's OBC has already been posted to my account and is showing on my cruise documents.

[mudpievelour]

It is valid with most fare codes, although it is not valid on military, travel agent or interline rates and certain other restrictions apply.

 

Not true! I'm booked on the Legend using the military rate and my shareholder's OBC has already been posted to my account and is showing on my cruise documents.

 

I have always been able to get the OBC with the Military discount.

[FantasyLineAddict]

There was a thread on this subject back in September where someone posted that CCL was a great buy because it had just dropped below $40 and he wanted that $100 obc.

 

There were more posts from people a short while later from people claiming that now was the time to buy because CCL had dropped below $35.

 

And then it dropped below $30..............

 

And then it dropped below $25...............

 

Well, at this point people said it couldn't go much lower and that this definitely was a great time to buy!

 

And then it dropped below $20..................

 

Do you see a pattern here?

 

There is an old Wall Street saying that you don't want to try to catch a falling knife.

 

I'm afraid that quite a few Carnival cruisers have sustained multiple knife wounds trying to acquire a $50 or $100 obc.

 

I agree to not buy just because of an OBC or the possibility of one, but CCL has been staying between $18-20, even while so-called safer stocks have been dropping.

 

I bought low and I've used shareholder OBC, so I'm biased. With people looking to add to their IRA at tax time, it might be a good fit.