Lets Get Ready To Rumble
My regulars know that Ive talked myself out of some profitable trades with the words at the right price, but Id rather miss out on some gains than lose capital. My regulars also know that I consider the business and the stock to be quite different things. Every business buys a number of inputs and turns them into a final service, hopefully for a profit eventually. In this case the âdelivery of fun vacations at sea and ashore!â The stock, on the other hand, is an ownership stake in either of these businesses that gets traded around in a market that aggregates the crowds rapidly changing views about the future demand for majestic views from the upper deck. These stocks also move around because they get taken along for the ride when the crowd changes its views about the market in general. So, some portion of Norwegian Cruise Lineâs 46% drop in price this year can be attributed to the 24% drop in the price of the S& P 500. So, stocks get buffeted around by a host of factors, ranging from company specific problems to the crowds rapidly changing views about âthe market.â
As my regulars know, I measure the relative cheapness of a stock in a few ways. For example, I like to look at the ratio of price to some measure of economic value, like earnings, sales, free cash, and the like. I like to see a company trading at a discount to both the overall market, and to its own history. At the moment, this is the relative valuation between these two stocks:
Trading Expectations For The Upcoming Trading Day Of Monday 19th
For the upcoming trading day on Monday, 19th we expect Carnival Corporation to open at $8.49, and during the day ,to move between $7.90 and $8.94,which gives a possible trading interval of +/-$0.521 up or down from last closing price.If Carnival Corporation takes out the full calculated possible swing range there will be an estimated 12.38% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $8.65 than the support at $8.08, our systems don’t find the trading risk/reward intra-dayattractive and any bets should be held until the stock is closer to the support level.
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A Breakdown Of Onboard Credits
OBCs are issued at a rate of one credit per cabin per 100 shares. That means that youll need to buy-in with at least 100 shares is you want to start accumulating onboard credits.
Even if you invest in more than 200 shares, your two onboard credits will only apply to one cabin each. The level of credit you get depends on the cruise line you invest in, and were just going to focus on Carnival cruise line stock benefits for now.
The amount of credit you can get on your stateroom depends on how long of a cruise you are going on. You can get $250 in OBC for sailings of at least 14 days, $100 for sailing between seven and 13 days, and $50 for sailings from one to six days.
Do keep in mind that if you have obtained other OBCs through a different avenue, they may supersede your investor OBC. In other words, OBCs from different offers typically will not stack with any OBCs you get from being a shareholder. If one OBC exceeds another OBC you have, you should be able to use the OBC with the greater value.
As investment OBCs tend to provide more value than those available through other offers, , you will usually still benefit from your investment, even if you have other forms of OBC.
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Wed like to share more about how we work and what drives our day-to-day business.
Dow Jones Futures Today: Treasury Yields Oil Prices
Ahead of Tuesdays opening bell, Dow Jones futures rose 0.2% vs. fair value, while S& P 500 futures gained 0.3%. Nasdaq 100 futures moved up 0.5% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesnt necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield fell significantly to 3.65% Monday. Last week, the 10-year Treasury yield briefly topped 4%, which hadnt been done for more than decade.
Meanwhile, U.S. oil prices jumped more than 4% Tuesday, as West Texas Intermediate futures traded above $83 a barrel. Last week, they fell to their lowest level of the year. On Wednesday, OPEC+ will meet to consider a production cut in order to help prop up falling oil prices.
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Why Carnival Stock Dropped On Friday
After three straight days of steadily rising stock prices, shares of cruise stock leader Carnival headed lower again on Friday, losing 3.6% through 10:50 a.m. EST. This week actually started out on a positive note for Carnival, which on Tuesday reported that its Cyber Monday sales set a new record: 50% higher volume than in the last Cyber Monday preceding the pandemic, in 2019. Monday’s good news echoed Carnival’s declaration earlier this year that the March 28 to April 3 period was the busiest booking week in the company’s history.
New Canadian Procedures Are A Win For Holland America Line Guests Cruising To Alaska And Canada
Holland America Line is pleased with the recent announcement of the lifting of Canadian pandemic border restrictions. Under the new guidelines, Canadian border vaccination and testing requirements are no longer necessary, which is an important step for the cruise industry in simplifying the travel process for itineraries to Alaska and Canada.
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Overview Of Carnival Corporation
Carnival is a large multinational cruise operator made up of a U.S.-based company and a UK-based company. The American arm of Carnival Corporation is listed on the New York Stock Exchange under the ticker symbol CCL. Conversely, Carnival PLC is listed on the London Stock Exchange. The two companies operate as one entity and have over 100 cruise vessels across nearly a dozen different cruise line brands. These include:
- Princess Cruises
- Seabourn Cruise Line
Arnold W. Donald is the CEO and president of Carnival Corporation. In total, the companies above employ over 150,000 people. While Carnivals business was quite heavily impacted due to the COVID-19 pandemic in 2020, it had revenues of nearly $6 billion over the year.
Best Value Cruise Line Stocks
These are the cruise line stocks with the lowest 12-month trailing price-to-sales ratio. For companies in early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves profitability. The price-to-sales ratio shows how much you’re paying for the stock for each dollar of sales generated.
| Best Value Cruise Line Stocks |
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Source: YCharts
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Carnival Has Added Some Fun Ship Features
Carnival has done a quick retrofit to Venezia to some staples that the cruise line’s biggest fans expect on its ships.
“Guests will find signature Carnival restaurants and bars on board Carnival Venezia, including the steakhouse Fahrenheit 555, Bonsai Sushi & Teppanyaki and the Chefs Table, along with Lido Marketplace, Seafood Shack and Pizzeria del Capitano, Piano Bar 88 and Heroes Tribute Lounge,” the cruise line shared.
Some classic venues will also offer an an enhanced menu adding some Italian favorites. Gelato, for example, will join the popular coffee and snack options at Java Blue Café.
Venezia will also offer some new venues that are firsts for Carnival including, but not limited to:
How To Buy Carnival Stock With A Financial Advisor
If youre looking for a hands-on alternative to buy stock like CCL without a brokerage account, a financial advisor can provide you with expert guidance on your investment portfolio. You can work with one to determine your investment strategy and structure your portfolio to reach your financial needs and goals.
This is a particularly great option for those who are new to investing. The know-how of a financial advisor can come in handy if youve never dabbled in the stock market. In fact, an advisor can help you hedge against losses by diversifying your assets across the market. This is also true if youre close to retirement, since youll have the benefit of having your future under the watchful eye of an advisor.
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Rising Energy Prices Are Hurting Cruise Line Stocks
The fall in cruise line stocks might sound counterintuitive as all cruise companies have been reporting strong sales growth and a massive increase in customer deposits. However, one reason cruise line stocks are falling is due to higher fuel costs, thanks to the steep rise in crude oil prices in 2022.
How Do You Let The Cruise Line Know Youre A Carnival Shareholder
Although so many things are automated these days, youll need to let the cruise line know that youre a shareholder before each and every cruise, so you can have your OBC credited to your account.
Annoying, I know, especially if you take a lot of cruises! But trust me, it only takes five minutes, and youll earn between $50 and $250 to spend on your next cruise. Now thats a nice rate of return!
Five steps to apply for onboard credit as a Carnival stockholder
Applying for Carnival shareholder stock is simple if you follow these steps:
Youll need to mail, email, or fax proof of your shares to your specific cruise line at least three weeks before your sail date.
Proof of shareholder status could include a copy of your shareholder proxy card, a dividend tax voucher, or a nominee statement with both your mailing address and brokerage account number blacked out.
Be sure to also include your full name, reservation or booking number, ship name, and sailing date to ensure youre credited correctly.
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Princess Cruises Ready To Welcome All Guests With Transport Canadas Removal Of All Covid
With todays announcement from Transport Canada to remove all COVID-19 requirements to enter the country, Princess Cruises is prepared to welcome all guests on cruises visiting, arriving or departing from Canadian ports, including its Canada/New England voyages and Alaska cruises where the cruise line is the industry leader. All of Princess Alaska cruises feature Canada as part of the itinerary.
Carnivals third-quarter fiscal 2022 results are likely to reflect benefits from the resumption of operations and encouraging bookings.
How To Get Onboard Credit For Owning Carnival Stock
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If you cruise on Carnival, Princess, or any other Carnival-owned cruise line, you can get free onboard credit on every cruise, just for being a Carnival stockholder! Heres how to get your free OBC.
One of my favorite perks of cruising is getting free onboard creditoften abbreviated to OBC when I book during certain sales. Since I always use a cruise travel agent, Ill often get extra onboard credit just for booking through the agency.
OBC is awesome! You can use it for just about anything on the shipbuying souvenirs in the shops, paying for specialty dining, booking shore excursions, and more.
But did you know that you can get even more free onboard credit every time you book a cruise on Carnival, Princess, Holland America, or any other cruise line owned by Carnival Corporation?
Its true! If youre a Carnival stockholder, youre eligible for free onboard credit each time you cruise. As long as you own enough shares and can show proof before each sailing, youll get free money to make every cruise even more fun.
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Dow Jones Leaders: Apple Microsoft
Among Dow Jones stocks, Apple shares climbed 3.1% Monday, snapping a three-day losing streak. Still, shares are more than 20% off their 52-week high and below their 50- and 200-day lines.
Microsoft rose 3.3% Monday, rebounding from Fridays 52-week low price. The software giant remains more than 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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Why You Should Buy Carnival Stock
Carnival is one of the largest cruise companies in the world and controls the budget end of the price spectrum. It had a fleet of 91 ships as of Nov. 30, 2021. Notable brands include Carnival Cruise Line, Princess Cruises, Holland America Line, Costa Cruises, Seabourn, and Cunard.
In the third quarter, revenue grew 80% over the previous quarter, with occupancy rates at nearly 90%.
Like Norwegian, Carnival is emerging from the pandemic with a more efficient cost structure, which should lead to solid profit growth over the next few years. However, the market is pricing the two stocks completely differently. On a price-to-sales basis, Norwegian trades at 2.54 times trailing-12-month revenue, while Carnival trades at less than 1. Carnival may offer greater upside due to its lower valuation, but it might not offer the same long-term growth prospects as its smaller rival.
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Down 83% Since January 2018
While CEO Arnold Donald has been receiving commendations for steering the worlds largest cruise company through the pandemic, its not hard to see why the board decided to give Josh Weinstein a chance.
Carnivals stock is currently trading at the lowest point since it crashed in January 2020 and reached its lowest point of $8.49 on April 3, 2020. And this is where the real worry lies.
Carnival Corporations fleet of cruise ships, sailing for nine different brands, are nearly all sailing again. The company has invested heavily in renewing its fleet, increasing efficiencies, and focusing on environmental compliance. Yet it seems to be having little effect.
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Selling Seabourn, although still unconfirmed, will bring some breathing space for Carnival Corporation. But it will not satisfy investors. If anything, it will make them even more pessimistic on what the future brings for the cruise giant.
Last week, Bloomberg warned about the rising cost of debt and questioned Carnivals ability to meet its interest payments. That message made Carnivals stock tumble 18.63% this week, 21.49% this month, and 83% since January 2018.
On Wednesday, Morgan Stanley issued another warning on Carnivals debt load, citing weak sales, growing economic risks, and the rising cost of interest on the debt. All in all, the pandemic has turned Carnival Corporation into one that is likely to see some very difficult times ahead.
Royal Caribbean Carnival Share Bad News For Cruise Fans
- Publish date: Dec 15, 2022 11:41 AM EST
Both Royal Caribbean – Get Free Report and Carnival Cruise Line – Get Free Report have built back their businesses from the dark days of the covid shutdown.
The two cruise lines went from closed to open with very limited passenger capacity to ships sailing with full customer loads.
It’s an impressive feat given what the two companies had to battle. Even when consumers were willing to get back on planes and visit theme parks, some people remained wary of being enclosed for multiple days on a cruise ship. That might not have been fair given the steps Royal Caribbean and Carnival had taken to control covid, but it was a factor for both companies.
A desire to lure customers back onboard led both companies to offer some prices well below historical norms. The tactic worked, as both cruise lines have been sailing near 100% capacity. And those low prices have been offset by higher prices onboard for specialty dining, drink packages, gratuities, and pretty much everything else.
Now, with covid-related rules fully lifted, older passengers returning, and international travelers visiting the U.S. again, both Royal Caribbean CEO Michael Bayley and Carnival CEO Josh Weinstein believe that cruise prices need to rise.
Image source: Shutterstock
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Carnivals Cyber Monday Booking Volume Sets Record
Carnival stock is higher Tuesday after the cruise line announced the volume of bookings during this years Cyber Monday sales were double 2019 booking levels. On Tuesday, Carnival said in a news release that there is now a pent-up demand for cruising. Carnival was offering some major deals for guests who wanted to book a cruise for Cyber Monday this week.
What’s Happening With Carnival And Covid
Carnival suspended cruise operations in March 2020 after the COVID-19 pandemic struck. Carnival relaunched cruises from the U.S. on July 3, 2021, when the Carnival Vista departed from Galveston, Texas. It has since adopted detailed COVID-19 protocols. These include pre-cruise questionnaires and testing for vaccinated guests, and proof of vaccination required at terminals in advance of boarding.
In April 2022, Carnival said the week ending April 3 was the busiest for bookings in company history, up more than 10% from the prior record. The last of Carnival Cruise Line’s 23 ships returned to service on May 2.
As of April 2022, vaccine exemptions for select destinations in the Caribbean were available for a small number of children under 12, as well as teens and adults with medical conditions that preclude vaccination as documented by a medical provider. Unvaccinated guests must present a negative PCR COVID-19 test taken between 24 and 72 hours prior to embarkation in addition to taking an antigen test at embarkation and again within 24 hours of debarkation. Unvaccinated guests also must show proof of travel insurance coverage in some cases, and may only go ashore in ports of call when booked on a Carnival-sponsored tour.
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