Princess stock continues to go down.

[CineGraphic]

Soon, the entire fleet will be at 100% passenger capacity, yet we have no idea what level the crew will be staffed at.

Lately the ships seem to be short-staffed, either by choice, a shortage of workers willing to do the job, or illness.

Even though many stocks are going down, I can't help bu think that customer dissatisfaction, and the cancelling of future bookings based on recent experiences is helping the downward trend. The last time the stock price was this low, no ships were sailing at all.

[c-boy]

[skynight]

Stock is going down for many reasons. Inflation will make fares higher, disposable income lower are just two reasons. Stock prices reflect the longer term ability to make profits. The disturbing level of Princess' customer will not help that Carnival brand. It was a grave error to invest in a poorly designed app for booking during a period of time when the company had no income. To make a turn around Princess needs to vastly improve its customer service. 

[Sunwanabe]

10 minutes ago, CineGraphic said:

Soon, the entire fleet will be at 100% passenger capacity, yet we have no idea what level the crew will be staffed at.

Lately the ships seem to be short-staffed, either by choice, a shortage of workers willing to do the job, or illness.

Even though many stocks are going down, I can't help bu think that customer dissatisfaction, and the cancelling of future bookings based on recent experiences is helping the downward trend. The last time the stock price was this low, no ships were sailing at all.

I would agree that going at full capacity without the quality of service to back it up is a very poor corporate decision. Other carriers have made the necessary adjustments and reduced capacity in line with servicing their guests. I realize it's a delicate balance but the main goals are to provide quality service and get repeat business.  

[voljeep]

[eclue]

Time to buy some Carnival stock - last I checked it was 11.15

 

[phroggie]

Carnival, like AMC and several other companies is a "zombie" meaning it's taken on so much debt to survive the pandemic that almost all its earning are going to service the debt (at increasing interest rates) leaving nothing for investing in the future and and even less to returning something to the shareholders in the form of dividends or stock buybacks which is why one would invest in the first place. In the scheme of things, hiccups in operations are hardly being noticed by institutional investors.

 

At least Carnival has some assets to use to raise money: all those ships. (As opposed to AMC whose only assets are the trademark and the popcorn machines. And that advertisement with Nicole Kidman that they run before movies. It's gotta be worth something?)

 

Meanwhile, if you're a frequent cruiser and you buy the minimum at the right price, the shareholder benefit might actually constitute a minimally adequate "dividend".

[Princessfan20]

Welcome to the world of junk stock....inflation, recession and stagflation will cripple the cruise industry or else they will have to start serving "Happy Meals" in the main dining room to make a profit...the 1970's are coming back!

Edited June 10, 2022 by Princessfan20

[jimbo1683]

Stock markets are down and recession is predicted for 2023. It's bigger than Princess' customer service I'm afraid

[wowzz]

5 hours ago, CineGraphic said:

, I can't help bu think that customer dissatisfaction, and the cancelling of future bookings based on recent experiences is helping the downward trend. 

The major institutional investors couldn't care less about what a few hundred people on this forum are moaning about.

Bookings are healthy, assets are in place,  but the debt is high. That is what matters, not someone moaning about the app not working ! 

[jimbo1683]

2 minutes ago, wowzz said:

The major institutional investors couldn't care less about what a few hundred people on this forum are moaning about.

Bookings are healthy, assets are in place,  but the debt is high. That is what matters, not someone moaning about the app not working ! 

The stock markets are down. Investors are loosing confidence. It's not just Carnival.

[John99]

Bloomberg issued a warning about the rising cost of debt and questioned Carnival's ability to meet its interest payments -- a note that sent the stock falling.  

 

Also, Morgan Stanley on Wednesday issued its own warning about Carnival's debt load.

Unsurprisingly, Carnival stock fell in response.  Morgan Stanley cited weak sales, growing economic risks, and the rising cost of interest on debt as the three biggest risks to Carnival.

 

The Morgan Stanley further warned that investors can expect Carnival will require more cash to tide it over until conditions improve in the cruise industry.  Increase in bookings for the next 2 quarters would help ease the pain.  MS stated if things don’t improve expect Carnival to raise cash by issuing more stock.  Last quarter, Carnival reported operating losses of over $1.0 billion and negative free cash flow of $1.0 billion. As such, Carnival wasn't generating any of the cash needed to pay its $368 million in interest costs and had to go further into debt. 

Macrotends.com reported on Carnival the following --

Quarter ending February 28, 2022 was $29.887B, a 12.69% increase year-over-year.

Carnival long term debt for 2021 was $28.509B, a 28.83% increase from 2020.

Carnival long term debt for 2020 was $22.13B, a 128.73% increase from 2019.

Carnival long term debt for 2019 was $9.675B, a 22.51% increase from 2018.

 

[Mike45LC]

Although Carnival is on my "watch list", I rarely check it.  No good news, and there is no reason for me to check it -- I am not going to sell (I am incredibly upside down!) and I am not going to buy any more.  So I don't want to know. 

 

I'll let my Executor sell it after I am gone.  

[paradiselivin1]

You are not alone....

[Ombud]

Riding it out. Bought at 8.69*. Will have received 900 in thus new round of shareholder obc. Hoping that Saudis still buy Seabourn as that will / should satisfy that loan. 

 

*previously bought at 56, obc brought down to 43, after sale & shorts, loss of $100~. So after September I'm sort of zeroed out

Edited June 10, 2022 by Ombud

[Guest ldtr]

6 hours ago, eclue said:

Time to buy some Carnival stock - last I checked it was 11.15

 

Which is just about fair value when one compares the pre-Covid price and debt levels, to the current much higher debt levels, as well as the dilution of the stock due to the amount issued during the shutdown.

 

Combine that with the fact that a year after restarting they are still not making enough to cover their debt payments.

[CineGraphic]

1 hour ago, Ombud said:

Riding it out. Bought at 8.69*. Will have received 900 in thus new round of shareholder obc. Hoping that Saudis still buy Seabourn as that will / should satisfy that loan. 

 

*previously bought at 56, obc brought down to 43, after sale & shorts, loss of $100~. So after September I'm sort of zeroed out

 

We bought low like you, but sold off extra shares when it hit $31 last year, so our 100 shares are paid for. Total shareholder benefit obc since the restart, $650. (what's not to like about that!?)

[azbirdmom]

We tend to judge Princess on the pre-pandemic experience but that's not likely to return any time soon.  The reality is that CCL is struggling financially even as bookings improve.  If anyone wants to see how grim it is, Seeking Alpha had an article last week about CCL that was truly frightening.  At this point I will keep enjoying cruising on Princess as long as they keep us safe, other than that I'm not going to stress about missing gold Elite amenity bags or turn down service.

[Astro Flyer]

19 minutes ago, azbirdmom said:

The reality is that CCL is struggling financially even as bookings improve.

And if the title of a recent article about bookings is accurate even more troubles are ahead. Is demand eroding as FCCs are all used? 

 

“Cruise stocks may face trouble as demand 'seems to be eroding': BofA”.

https://stocks.apple.com/AJ0q2m16XS06U56gfrFGABw

 

Other recent articles about the amount of CCL debt are also troubling. Princess has been my first choice for cruising for nearly 35 years & hope they’ll eventually return to a wonderful cruise experience & profitability.
 

Unfortunately their lack of treating customers fairly has resulted in reconsidering our loyalty. All cruise lines are struggling but for next year we’ve booked our first Oceania cruise. It costs more but prefer fewer quality days than more days dealing with Princess issues. A good friend sailed Oceania again (and has also cruised on Princess) in April post resuming cruising & we cruised on Princess in the same month…their cruise was like pre-pandemic but ours was not. 😟

 

[azbirdmom]

18 minutes ago, Astro Flyer said:

And if the title of a recent article about bookings is accurate even more troubles are ahead. Is demand eroding as FCCs are all used? 

 

“Cruise stocks may face trouble as demand 'seems to be eroding': BofA”.

https://stocks.apple.com/AJ0q2m16XS06U56gfrFGABw

 

Other recent articles about the amount of CCL debt are also troubling. Princess has been my first choice for cruising for nearly 35 years & hope they’ll eventually return to a wonderful cruise experience & profitability.
 

Unfortunately their lack of treating customers fairly has resulted in reconsidering our loyalty. All cruise lines are struggling but for next year we’ve booked our first Oceania cruise. It costs more but prefer fewer quality days than more days dealing with Princess issues. A good friend sailed Oceania again (and has also cruised on Princess) in April post resuming cruising & we cruised on Princess in the same month…their cruise was like pre-pandemic but ours was not. 😟

 

 

We are also "straying" from Princess but it's mainly because Princess no longer goes to some of the destinations that remain on our bucket list.  We're doing Celebrity to Egypt and Israel next year and Oceania to French Polynesia in 2024.  It will be interesting to see the difference in the cruising experience.  Here's the link to that article I mentioned https://seekingalpha.com/article/4515978-carnival-enormous-risk-for-lt-common-stockholders?fbclid=IwAR1bi_hHML8cYPbaiCp-_1qwWGWMnLJucht8d_d4nvhTOE8q77oq5mZ6Fwo

[CineGraphic]

1 hour ago, azbirdmom said:

other than that I'm not going to stress about missing gold Elite amenity bags or turn down service.

 

Is expecting specialty venues to be open asking too much? (asking for a friend)

[azbirdmom]

1 minute ago, CineGraphic said:

 

Is expecting specialty venues to be open asking too much? (asking for a friend)

 

Expecting a venue that you paid for to be open is not asking too much.  It's the extra niceties that we were all used to that won't be back anytime soon, if ever.

[Astro Flyer]

18 minutes ago, azbirdmom said:

Here's the link to that article I mentioned

Thanks…it’s the same article I read about the problems so much debt has created & the difficulties of recovery with so much debt.

 

“Sales have increased recently, but this has come at a cost. Carnival continues to lose money from operations. In fact, last quarter's increased revenue led to a steeper cash outflow from operations”.

 

[AE_Collector]

Just the increase in fuel costs (they don’t hedge it all) combined with ships half full precluded any profit. Best they can hope for is to stabilize the losses.

[pwlee49]

GAS......GAS🤔GAS....