Use Stimulus Funds to Buy CCL Stock...?

[NavyCruiser]

10 hours ago, amatuercruiser said:

 

Do you think the CCL, RCL share price has Bottomed?

 

I think the approx 80% price drop in Carnival and  RCL share price,  prices-in a lot of future pain..but, it does not necessarily mean you are buying at the best time!

 

 

 

 

80% off is pretty good pricing now, RCL PE is below 2.7, CCL PE is below 2

 

Bulls Make Money, Bears Make Money, Pigs Get Slaughtered...

[ezd222]

With the injection of common stock and new debt terms an 80% discount is not a realistic measure.

I can't see it ever getting back up to ~$50 in the next 5+ years. I believe analysts have targets ~$20 as an optimal price.

[Ellusionz]

only if stocks stay under $10 by the time we get the checks lol

[Moviela]

Carnival Corporation and Carnival plc are two separate companies reporting together. Carnival Corporation is incorporated in The Republic of Panama, and Carnival plc is registered in England and Wales. They have numerous operating companies registered in many countries. The companies are listed on the NY and LON exchanges to attract investors on both sides of the Atlantic. 

 

Investing in the company is a personal choice, and it is up to you to do your homework and determine if it fits with your investment objectives. 

 

You should know that Carnival needs an injection of cash to weather the storm caused by the shutdown. They took two avenues to raise cash. One is by selling bonds to investors that pay interest, and be fully repaid in the near future. The other is  by selling common stock. The stock they sold raised billions, but it dilutes the share value of the existing stock holders. They sold about 8% of the company to The Kingdom of Saudi Arabia. This may be purely an investment on the part of the Kingdom, but owning more than 5% of a company generally allows the shareowner to select their own member of the Board of Directors. 

 

[amatuercruiser]

15 minutes ago, Moviela said:

Carnival Corporation and Carnival plc are two separate companies reporting together. Carnival Corporation is incorporated in The Republic of Panama, and Carnival plc is registered in England and Wales. They have numerous operating companies registered in many countries. The companies are listed on the NY and LON exchanges to attract investors on both sides of the Atlantic. 

 

 

Quote

Thanks for the interesting response.

 

I thought they were one company "Carnival" with a THREE  classes of stock with DIFFERENT Voting rights.

 

CCL  Listed on NYSE

CUK Listed on NYSE

CCL Listed on LSE

 

Also the CCL.LSE and CUK.NYSE apparently has different voting rights and also one extra type of share.

In the recently release Financial report I saw a section ..(from memory) Two classes of share

Carnival Stock issued at .01 par

and Carnival Stock issued at approx $1.77

 

I agree on the Extra Shares issued by Carnival Diluting the current share Holding.

 

Carnival is no longer the Fit and trim organization it was two months ago.

 

It is very battered and bruised. now carrying $6 Billion of Junk Bond indebtedness  and 8% more share holders to split a future dividend around.

 

 

 

Quote

 

 

Edited April 8, 2020 by amatuercruiser

[cmukid87]

Won't use the stimulus to purchase stock but will use it put a deposit on a family cruise for December.