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Arnison Sells A Block of Carnival Stock


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1 hour ago, jimbo5544 said:

You do realize this type of thing happen all the time.

I don't think you know how to read that writing on the wall. Entertaining, if nothing else. Such devotion will still go unrewarded.

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There is no problems with Carnival's current balance sheet. It is a going concern and while no one can predict the future, there is no reason to consider bankruptcy. 

 

Mickey is a founder of the company with his father, and served as CEO from the late 70's until about 7 years ago. His operation of the business has been exemplary and he was at the helm while growing it into one of the largest travel and leisure companies. His worth is estimated to be over 6 billion dollars.

 

In my opinion this sale of a small portion of his holdings is for estate planning purposes. As a gentleman approaching his 72nd year he is rightfully making plans for the future to protect his estate from the ravages of the tax man. 

 

I don't believe there is anything to worry about for people holding reservations. Stockholders on the other hand always need to consider that the market prices their investment, and as we have seen this year the bulls took a $50 stock and plunged it to $8 in April. It has since recovered to about $20, but that is no guarantee that it will stay there. One should seek professional advice before investing in any securities, and take advice on a regular basis to balance your portfolio, as I a sure Mickey has done.  

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8 minutes ago, chengkp75 said:

I believe the DOJ and a federal judge would take a different view of his operations.

I think the poster who praised his operation of the business was referring to keeping the profits flowing in (before the present crisis of course).

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1 minute ago, ontheweb said:

I think the poster who praised his operation of the business was referring to keeping the profits flowing in (before the present crisis of course).

It's easy to keep the profits flowing if you disregard statutory regulations.

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Around the time the first round of cancellations was announced (last February or March) Carnival released a statement that it could remain solvent with no income for a specified period of time.  I believe it was 18 months, but don't always trust my own memory.

 

Since then they have borrowed a lot and issued a lot of stock.  Pandemic aside, we don't yet know what progress has been made toward correcting court ordered environmental deficiencies.

 

It's not a pretty picture.

 

 

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2 hours ago, chengkp75 said:

I believe the DOJ and a federal judge would take a different view of his operations.

 

I agree with you that Carnival has had very serious violations of environmental rules, and showed a look the other way attitude toward stewardship of the sea. 

I will not believe that Mickey himself as CEO  was fully aware of what lower management was doing at all times. No CEO does. 

Carnival gets a lot of scrutiny because of the megaphone used by outfits like Friends of the Earth that would have us all living in the fifth century and only their members should be allowed in Yellowstone Park, and we should move about the pacific in outrigger canoes. 

 

 Alaska has rather robust monitoring of discharges from cruise ships, and Carnival brands have a large portion of that market. Not surprisingly they get fined more often, but that does not mean that other operators are NOT comfiting violations, just that there is a sharper eye on Carnival.

 

Imagine if you had to have a State Trooper in your backseat every time you drove on the highway, you would accumulate a lot more tickets than the other cars on the road, yet your level of compliance would likely be equal. 

 

I really doubt $20 million dollar fines are a deterrent to bad behavior, that is just a cost of doing business. Jail time though gets the attention of those who earn $12 million per year. Carnival LLC now has an officer reporting directly to the CEO to assure compliance with laws and regulations. I do think they have gotten the message that they need to change their culture, and reward good behavior on the part of employees. While I have not been a passenger since February it did appear to me that they were aware and doing their best to comply. 

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15 minutes ago, Moviela said:

 

I agree with you that Carnival has had very serious violations of environmental rules, and showed a look the other way attitude toward stewardship of the sea. 

I will not believe that Mickey himself as CEO  was fully aware of what lower management was doing at all times. No CEO does. 

Carnival gets a lot of scrutiny because of the megaphone used by outfits like Friends of the Earth that would have us all living in the fifth century and only their members should be allowed in Yellowstone Park, and we should move about the pacific in outrigger canoes. 

 

 Alaska has rather robust monitoring of discharges from cruise ships, and Carnival brands have a large portion of that market. Not surprisingly they get fined more often, but that does not mean that other operators are NOT comfiting violations, just that there is a sharper eye on Carnival.

 

Imagine if you had to have a State Trooper in your backseat every time you drove on the highway, you would accumulate a lot more tickets than the other cars on the road, yet your level of compliance would likely be equal. 

 

I really doubt $20 million dollar fines are a deterrent to bad behavior, that is just a cost of doing business. Jail time though gets the attention of those who earn $12 million per year. Carnival LLC now has an officer reporting directly to the CEO to assure compliance with laws and regulations. I do think they have gotten the message that they need to change their culture, and reward good behavior on the part of employees. While I have not been a passenger since February it did appear to me that they were aware and doing their best to comply. 

While Mr. Arison may not have known of individual violations, he set the corporate culture that recruited senior management that allowed these violations to happen and to continue.  Having worked in the industry for decades, I know that ship's crew do not wake up one day and say "I'm going to jeopardize my career and incarceration by violating an international regulation, in order to save the company some money", no, they are told "make the environmental problem go away, and I don't want to know about it".

 

Carnival gets the attention because they have continued to violate environmental laws after having been caught.  While it is true that other lines have been found guilty of violations, none have been found to be chronic repeat offenders, like Carnival.

 

Carnival had a compliance officer who was found to be assigned the responsibility for environmental compliance, without being given the authority to enact changes, or a budget to accomplish this.  This was done by Carnival Corp's senior management, as an attempt to meet environmental compliance while not really accepting the culture necessary for the change.  Even the fact that the judge recently told Mr. Donald that the progress to date is not acceptable, and that while the ships have been idle that very little was accomplished to meet compliance, leading to the requirement of a personal certification by Mr. Donald of compliance by each ship wishing to operate in the US.

 

Oh, no, while Mickey Arison may not know about every discharge of oil that happens on his ships (though given the severity of the probation the company is under, he probably should, I know that in the two companies I've worked for that were under DOJ probation, there was a direct notification to the CEO by that compliance officer that you place so highly in Carnival), he created the corporate culture by hiring Mr. Donald and others down the line, who wish nothing more than to hope that they can get away with not getting caught, and if caught, the expense is merely a cost of doing business.

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12 minutes ago, chengkp75 said:

... he [mr. Arison] created the corporate culture by hiring Mr. Donald and others down the line, who wish nothing more than to hope that they can get away with not getting caught, and if caught, the expense is merely a cost of doing business.

 

I think you are right in your observations, and agree with them. Arnold Donald, however, was never hired by Mickey. Arnold was elected by the shareholders to the board of directors. He acted as a director for a dozen years when Mickey decided to step aside as CEO. The board of directors then voted to offer the CEO position to Arnold Donald. Here again I agree that he has not handled compliance issues with the deftness his position calls for in the past, I think the message has finally become clear that the culture must be changed. I agree compliance without authority and budget is a paper tiger. 

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7 hours ago, Purvis1231 said:

I said months ago we would have Royal Carnival when thi was over with only a few ships sailing. I hope I am wrong but the new world order will not be kind to US based cruise lines.  

I was say that MSC will be in a better situation when this is all over!

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