CCL stock dips below 40

[coevan]

14 hours ago, john91498 said:

 

Do you know how many stocks have to sold to make a $5 dollar movement? You obviously have no idea how the market works.

 

And the "bottom feeders" are brokerage firms with trillions in assets...saddens me when people like you have no idea what they are talking about.

 don't be sad😥, be happy😃

[ALWAYS CRUZIN]

5 hours ago, ScubaDuck said:

I was really considering getting in on some Carnival stock, but do I assume correctly that we lose it all if the company ends up filing for bankruptcy?

Goes for any business that a person owns shared in and it goes belly up. However. I do not think that Carnival will go out of business. Way to big and owns several cruise lines and a bunch of ships. It gives them and so many other cruise lines some time to clean up and get set for a lot of bookings when they start again. My thought is. better book your cruises now. There may be a very good chance the prices will go up. So will the stock.

[salty dingo]

That shareholder credit is pretty expensive, huh?

 

It's probably a month or two before this bottoms, and is a buying opportunity. The costs to the company of idling the fleet are massive, could even wipe out shareholders if this virus lasts longer. Hopefully people wanting shareholder credit only owned 100 shares so won't be impacted much.

[n6uqqq]

12 hours ago, ScubaDuck said:

I was really considering getting in on some Carnival stock, but do I assume correctly that we lose it all if the company ends up filing for bankruptcy?

It depends on the type of bankruptcy. If it is a going out of business bankruptcy then yes the shareholders are likely sorry out of luck. If it is a bankruptcy to reorganize and stay in business then the shareholder is still an owner albeit at a terribly low stock price since there was a need for bankruptcy in the first place.

[Stick93]

If trump was tweeting about them closing down you have to figure the Government will throw them a lifeline to keep them afloat if needed.  
 

I am no expert in this but this is my thought. 

[chipmaster]

23 hours ago, Kmkub said:

Good deal. Congrats! I wanted to wait an extra day, but both my husband and financial planner vetoed me. I'm good with the $18/share we paid.

 

Till it goes to 10 and cuts the dividend 90% to converse cash as even at record low interest rates can't secure any funding for their huge obligations in 2021 and 2020.

 

https://seekingalpha.com/article/4331763-carnival-dividend-must-be-cut

Edited March 15, 2020 by chipmaster

[john91498]

13 hours ago, n6uqqq said:

It depends on the type of bankruptcy. If it is a going out of business bankruptcy then yes the shareholders are likely sorry out of luck. If it is a bankruptcy to reorganize and stay in business then the shareholder is still an owner albeit at a terribly low stock price since there was a need for bankruptcy in the first place.

 

Panama laws don't even have bankruptcy as an option.

[coevan]

The  CCL company is U.S. the ships are registered in Panama for tax purposes

[ALWAYS CRUZIN]

My dad always told me and something for many to adhere to. if you cannot do anything about a problem. Do not worry about it. My wife and I now own 800 shares and really happy we bought it. The last 200 were just under $15 a share.

[boomhower]

20 hours ago, Stick93 said:

If trump was tweeting about them closing down you have to figure the Government will throw them a lifeline to keep them afloat if needed.  
 

I am no expert in this but this is my thought. 

 

Pretty much what I have been saying but seems to be poo pooed on by most.  I'd love a transcript of the call he had prior to the announcement that they shut down for a month.  Yes I know Carnival was the last.  A bailout doesn't just have to be a boat load of cash.  (pun intended) . But can be very very low interest loans to get them through the period of little to no cashflow.  I would also not be surprised for the creditors to forgive penalties until the ships are sailing again.  Them going bankrupt and selling assets is not likely to full fill the billions of loans they have out for all the new ships that have been ordered.  While the ships are flagged in foreign ports the vast majority of cruise fares are paid in the states and hence taxed.  It is going to be an interesting summer.  I have 100 Canival I bought at $33.  Likely but another 50 or and I'll pick up some RCL as well.  Dont cruise them but it's cheap with a good dividend. 

[john91498]

Why does so many people think there will be a federal bailout? The only 2 industries that got federal bailouts are cars and financial institutions. We need them, not some vacation company...

[Moviela]

On one hand Seeking Alpha promotes cutting the dividend, and the other dissects the balance sheet and suggests a price target of $46/share because of the financial position and ability to weather the current storm.

 

I have no idea what will happen with the stock. Nobody does, that is why there is a market to buy and sell. Depending on how long the crisis lasts the board of directors may be compelled by good sense to cut the dividend and shareholder benefit.

 

 

[deadmoney]

That makes the most sense.

[1019throw]

Futures have CCL down to under $15 and RCL under $28. Crazy. I do think the Fed will do something to assist, but it's going to be interesting. If you follow these boards, you know how wild and passionate people are about cruising. Once it starts back up, people will be back on board. 

[sanmarcosman]

Market Summary > Dow Jones Industrial Average

INDEXDJX: .DJI

Follow

 

20,922.33 −2,263.29 (9.76%)

Mar 16, 9:30 AM EDT · Disclaimer

 

Market Summary > Carnival Corp

NYSE: CCL

 

 

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15.03 USD −2.55 (14.51%)

Mar 16, 9:30 AM EDT · Disclaimer

 

Circuit breakers have stopped trading.

 

Edited March 16, 2020 by sanmarcosman

[lagienomai]

I bought at 14.97 last week. This is before they announced halting cruises. I thought it would drop more after the announcement. Waiting to buy. More for the OBC than an investment. However we did buy some NCL when is was at 8 and some change last week. Disney is also taking a big hit right now. 

[cruisingnewtoit]

2 minutes ago, lagienomai said:

I bought at 14.97 last week. This is before they announced halting cruises. I thought it would drop more after the announcement. Waiting to buy. More for the OBC than an investment. However we did buy some NCL when is was at 8 and some change last week. Disney is also taking a big hit right now. 

I got Disney at a great price. I thought the cruise stocks would tank today but they keep going up. I will probably buy if they go lower.

[Aplmac]

Digging around in my computer just now

I came across this 'aside' of info.

 

Not even sure if it still holds true? -- hopefully of interest to someone?

____________________

 

Carnival is the only company in the world

to be included in both the S&P 500 index in the US

and in the FTSE 100 index in the UK!

Carnival Corporation common stock is traded on the New York Stock Exchange

under the symbol CCL.

Carnival plc is traded on the London Stock Exchange under the symbol CCL

and as an ADS on the New York Stock Exchange -under the symbol CUK.

Carnival Corporation and Carnival plc operate a dual listed company

meaning the businesses of Carnival Corporation and Carnival plc are combined

and they function as a single economic entity

through contractual agreements between separate legal entities.

Shareholders of both Carnival Corporation and Carnival plc

have the same economic and voting interest

but their shares are listed on different stock exchanges.

[mz-s]

I would absolutely NOT expect a bailout for the cruise industry if it goes under, at least not from the US. Anything the Fed will do will be for the market at large, not focused on the cruise industry like the automaker TARP program in '08.

 

Automakers have/had immense domestic presence. Cruise lines do everything they can to avoid hiring Americans and following our laws.

 

I'm not saying the industry is in the crapper or anything like that (personally I think it'll bounce back) - just as with anything involving money, don't spend more than you can stand to lose.

 

I wouldn't be surprised to see CCL suspend the OBC benefit, nor would I be surprised to see it drop further than it has already. I doubt bankruptcy is on the table unless this thing gets much worse than it is now, but anything is possible.

 

Again - don't spend more, especially in this market, than you can stand to lose.

[coevan]

2 hours ago, cruisingnewtoit said:

I thought the cruise stocks would tank today but they keep going up

 

 

what are you looking at? CCL is down $2 today.

 

 

4 hours ago, 1019throw said:

I do think the Fed will do something to assist,

 

 

They did yesterday, lowered to .25

[LMaxwell]

13 hours ago, john91498 said:

Why does so many people think there will be a federal bailout? The only 2 industries that got federal bailouts are cars and financial institutions. We need them, not some vacation company...

 

Florida needs the tourist sales tax revenue though.  And the jobs in the service industry.  We don't have an income tax or any real export industry. 

[AmBear]

On 3/15/2020 at 12:22 AM, n6uqqq said:

It depends on the type of bankruptcy. If it is a going out of business bankruptcy then yes the shareholders are likely sorry out of luck. If it is a bankruptcy to reorganize and stay in business then the shareholder is still an owner albeit at a terribly low stock price since there was a need for bankruptcy in the first place.

 Did a quick Google search, 

from lawfirms.com

What Happens To The Stocks?

Normally, when a company goes bankrupt, there is a very good chance that stockholders will not get back anything close to the full amount of their investment. Even if a company does successfully restructure, you may still lose money. As a stockholder, your status once a company files under bankruptcy protection will change. Under Chapter 11, stockholders will cease to receive dividends and the appointed trustee may ask that stocks are returned in order to be replaced with shares in the reorganized company. However, you may also receive fewer shares, the value of which is worth less than the original stocks.

Edited March 16, 2020 by AmBear

[AmBear]

13 hours ago, john91498 said:

Why does so many people think there will be a federal bailout? The only 2 industries that got federal bailouts are cars and financial institutions. We need them, not some vacation company...

Cause Florida has 5 major cruise ports, and its a swing state in an election year!

[AmBear]

We've been looking at the prices of all the cruise lines, but the possibility that this could go on far longer then anyone knows, affecting the companies business models, we decided we'll wait til they start cruising again, maybe pay a little more for the stock, but feel its a little safer!

[Stick93]

18 minutes ago, AmBear said:

Cause Florida has 5 major cruise ports, and its a swing state in an election year!

good thought