carnival shares

toadhall

I've never bought shares, but I'm thinking of purchasing some carnival ones. Speaking to fellow cruisers recently they seem to suggest they are worth having as a long term investment, not to mention getting on board credit when we cruise
Does anyone else have some? Is there a "best way" to buy them?

Thanks

Thrugelmir

How many shares do you need to purchase to obtain the benefits?  Whether they are a long term investment is something that needs to be researched thoroughly for oneself rather than on the word of strangers. 

marlot

https://www.carnivalcorp.com/static-files/50351a91-4dc0-4f6b-bfec-684647e6129f

Buy through a broker - eg. HL  https://www.hl.co.uk/shares/shareholder-perks

Alistair31

“for the three months ending on 31 March, the cruise operator posted an adjusted net loss of $1.9bn”

Ash_Pole

I'm not 100% sure about this, but as HL (and other platforms) hold the shares in a nominee account it's possible you might not benefit from the shareholder perks.

wmb194

Ash_Pole said:

I'm not 100% sure about this, but as HL (and other platforms) hold the shares in a nominee account it's possible you might not benefit from the shareholder perks.

If you follow Marlot's first link it says a statement for your stockbroking account is enough evidence.

Ash_Pole

wmb194 said:

Ash_Pole said:

I'm not 100% sure about this, but as HL (and other platforms) hold the shares in a nominee account it's possible you might not benefit from the shareholder perks.

If you follow Marlot's first link it says a statement for your stockbroking account is enough evidence.

Ah didn't see that. So the OP would need to purchase 100 shares which at current share price would be around £1,600, and they would get a maximum of £190 onboard credit. It does say it's only valid for sailings to July 2023 though. 

tebbins

This benefit has been around for years, it is periodically reviewed and essentially renewed or changed slightly to be more or less generous. As far as I know it should or does work on a per cruise basis rather than as a one-off.
My family were/are at least annual cruisers, we bought the bare minimum in one family member's account right at the start of Covid.
Reasons:
1. We could afford to lose that amount
2. Fundamentally I didn't see the cruise industry disappearing permanently, and Carnival is the biggest company in the industry with the must diverse lines.
3. They have been an extremely cyclical company, cutting dividends (almost) completely in the early 2000s and GFC, only to increase them again rapidly. If/when they recover the dividend to 2019 levels, at current exchange rates the yield would be 15% of what we paid. There is an argument that this is just another cycle, not a death spiral.
4. The benefit was not the only reason we bought the stock, I wanted to buy it anyway but was not sure of spending £4k pre-Covid. Similarly, the benefits does not influence our cruise buying decisions. Is is simply an incidental benefit.

5. It's an excellent business model, with plenty of room for growth left - growing global affluent middle-class, globalisation, cruises are as affordable as "normal" holidays if you're half-decent at finding good deals, highly replicable business model, selling an addictive and intangible experience as a platform to monetise passengers via excursions/casinos/WiFi/drunks/premium dining/room upgrades, service charges, onboard shops...). Although a lot of people don't like cruises or the idea of them, such as being "stuck" on one ship (a hotel that takes you to different destinations), stuck with the same people (modern ships have thousands of guests), sailing/being on water (modern cruises enjoy safety records comparable with aviation) etc., Those numbers are being won over slowly, same as with flying.
6. Longevity - cruises as holidays have been around since the 1830-1840s.

7. Support - as significant international employers, a significant customer of the international maritime system, a bringer of tourists, and the prestige associated with being a cruise ship destination - in spite of the many valid controversies and criticisms, the cruise industry I believe enjoys a lot of implicit support.

There are plenty of risks and reasons to disagree.

We have been fine getting the benefit via a HL account - you just contact HL customer services and provide your shareholding information to the cruise line.

So far for us it has worked fine on a "per cruise" basis, it is by far the cheapest available to UK, much more so than NCL and RCL and includes a much greater variety of lines.

IvanOpinion

I agree with Tebbins. I hold shares in several cruise lines. Since buying them, about 15 years ago, we have received $250 of spending money (or £150 on P&O) on every cruise we have taken since. My shares have more than paid for themselves since owning them. 

All you have to do is email HL, with the cruise details, and they will send the relevant information to the cruise line or you can print off your own statement (redact account number and anything that is not relevant) and attach it to the email.

They are cheap at the minute but I suspect that once cruises get fully operational again they will rise quickly.

wmb194

Ash_Pole said:

wmb194 said:

Ash_Pole said:

I'm not 100% sure about this, but as HL (and other platforms) hold the shares in a nominee account it's possible you might not benefit from the shareholder perks.

If you follow Marlot's first link it says a statement for your stockbroking account is enough evidence.

Ah didn't see that. So the OP would need to purchase 100 shares which at current share price would be around £1,600, and they would get a maximum of £190 onboard credit. It does say it's only valid for sailings to July 2023 though. 

Based on Thursday's close in London - its shares are also available in New York - £1,392 plus 0.5% stamp duty and brokerage fees if applicable.

toadhall

Thank you all for you replies, very helpful. It is 100 shares minimum needed and I am aware of the risk of shares.
I  will be doing more research before buying, but it is good to know that it is a viable option.