funinhounslow

Yes they were fined for repeatedly dumping raw sewage into the sea weren’t they? Let’s hope the “Carnival boys” have a better grip on their obligations to minimise their impact on the environment…

Covid, double digit inflation, energy crisis means cruising is the last thing on many people’s minds at the moment. Venice increasingly off limits to cruise ships and I’m sure they won’t be the only port to decide enough is enough… And Carnival are literally billions in debt. I’d say the lack of dividends were the least of a Carnival shareholder’s worries. Plus as the chart above shows the shares were falling for years before Covid hit. Care to hazard a guess as to why that might be…?

So why were their shares on a downward trajectory even before Covid?

Because they like them? There’s simply nothing further “to get”. People enjoy different things. I would never lease an expensive car and as a non drinker find the amount some people spend on booze on cruises startling.

What affect do you think soaring energy and food costs plus interest rate rises (with more in the pipeline) will have on demand for cruises? Less of an issue for retirees with index liked DB pensions but overall this demographic doesn’t seem fond of the new “mega ships” that Carnival have bet the house on… Plus Covid is roaring ahead again - I’ve just succumbed after dodging it for over two years. The travel industry in general - and cruises in particular - face significant headwinds. Even at the current price I think buying 100 Carnival shares is brave. But fair enough for someone who fancies a “punt”…

We may have spoken too soon… A couple of negative analysts’ reports are being referenced in the media but such volatility is rarely a good sign… 😳

Just a shame we didn’t know this on Wednesday 22nd June…