carnival shares

tebbins

IvanOpinion said:

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.

Exactly, I saw it as ~£1,000 that we could afford tot lose, that we never need back in return for potentially significant extras on at least half of our future cruises. If they start paying dividends again I would probably treat those as extra holiday spending money as well (although obviously it's just cash that goes into your 'pool' of income).

jimexbox

I've put a few quid into carnival. The only way these are going is up. Barring another pandemic 🤞

marlot

jimexbox said:

I've put a few quid into carnival. The only way these are going is up. Barring another pandemic 🤞

As long as they can afford their debt obligations.

adindas

marlot said:

jimexbox said:

I've put a few quid into carnival. The only way these are going is up. Barring another pandemic 🤞

As long as they can afford their debt obligations.

Explanation of D/E ratio

https://www.investopedia.com/terms/d/debtequityratio.asp

Also Current ratio

https://www.investopedia.com/terms/c/currentratio.asp

But from the flip side, booking is jumping. People are making booking a few months in advanced.

https://finance.yahoo.com/news/carnival-cruise-line-sees-highest-200100654.html?.tsrc=rss

For those who could potentially optimise the perks in relatively a short period reaching breakeven of their initial investment, before the storm happen (if ever) it might not be a bad deal.

tebbins

That number must be in % because as of Q1 2022 Carnival's liabilities totalled $42.97bn and equity was $10.311bn.
Ratios such as this are no substitute for real research and understanding. In the context of Carnival, these figures are even less useful. Carnival's assets are only useful to Carnival or another cruise line that can use them.
Current interest expense is at $368m/quarter out of revenues of around $1.6bn/quarter. Pre Covid, interest was around $200m/annum out of operating income around $3bn/annum based on full-year revenues around $20bn.
One big change you can see is the ratio of additional income to passenger tickets. Pre-Covid, additional income peaked around 1/3 of revenue, in the latest quarter, the 'onboard and other' category came in at $750m, nearly as much as the $873m in passenger ticket sales, not to mention the $3,367 in passenger deposits already received, indicating as we come out of this pandemic there is already a very legitimate expectation of maybe another ~3bn already booked in over the next year or so just based on bookings already made which will be reflected in revenue as and when taken, without any new sales, let alone growth or recovery needed.

Winebottle

I've been looking at carnival shares as a "reopening" play but I've never been on a cruise.

I'd say if you are going to use the shareholder perks, it's a no brainer. 

Even if you work on the assumption that share prices are random and you expect a return of zero, you don't need many $250 for it to represent a healthy return.

tebbins

Winebottle said:

I've been looking at carnival shares as a "reopening" play but I've never been on a cruise.

I'd say if you are going to use the shareholder perks, it's a no brainer. 

Even if you work on the assumption that share prices are random and you expect a return of zero, you don't need many $250 for it to represent a healthy return.

It is the best type of holiday IMHO.

marlot

jimexbox said:

I've put a few quid into carnival. The only way these are going is up. Barring another pandemic 🤞

They're even cheaper now - down about 50% over the last three months.   

From a quick look, I think they'll need a major injection of new shareholder funds if they are to survive.  It's all down to customer confidence at this point.

adindas

marlot said:

jimexbox said:

I've put a few quid into carnival. The only way these are going is up. Barring another pandemic 🤞

They're even cheaper now - down about 50% over the last three months.   

From a quick look, I think they'll need a major injection of new shareholder funds if they are to survive.  It's all down to customer confidence at this point.

They might just do share offering diluting their shares and investors might need to wait to a very long time until they see a good return. Survival term used in finance OPM (Other People's Money)

That is the problem with investing a heavily indented company.