Carnival to make a bid for Royal?

[Gonzo70]

Interesting article by Glen Curtis, one of the Forbes analysts:

 

http://stocks.investopedia.com/stock-analysis/2009/Cruise-Lines-On-The-Rebound-RCL-CCL0722.aspx?partner=YahooSA

 

 

Next Wednesday July 29 earnings call will be interesting for RCL.

 

Todays trading was interesting......

 

Hopefully he's right, but I think he painted an overly rosy picture. There are some things to be optimistic about, but there are still significant risks looming. Oil is in that precarious range where it is high enough to significantly drive down their '09 full year earning estimates (which were made back when oil was lower) but it is not so high that they can comfortably reinstate the fuel surcharge. The swine flu scare also had very significant impact on their earnings. Unemployment in U.S. remains high and the economy still has uncertainty. With the cruise lines introducing so many new ships just when people have less discretionary income - that just is not a good scenario. There definitely is a risk of cannibalization unless the economy begins booming sooner rather than later.

 

While I agree with a lot of the points he made, I think he neglected to also speak about the risks. RCL remains a very volatile stock in a very volatile sector.

 

I look forward to seeing what they report next week and to what comments they make about the upcoming quarters.

[csoud]

monster ships and the ships they do build cost millions less than rci. I personally like Carnival. The Glory is a beaut...

[jmom5]

?????

[Bellalago Breeze]

Why would you drag out this old thread?:confused:

[tahqa]

[HighlandCruzer]