Carnival & Royal Stocks to our IRA's...

[LMaxwell]

28 minutes ago, NavyCruiser said:

Carnival may be bottoming out & bounced up 50 cents, or up 2%, this morning

Things are about to get worse for Carnival.  See the news coming out of Port Everglades this morning.  

[NavyCruiser]

More bad news:

 

https://www.marketwatch.com/story/cruise-line-stocks-could-still-fall-further-suntrust-rh-says-2020-03-10?siteid=yhoof2&yptr=yahoo

 

Cruise line stocks could still fall further, SunTrust RH says

 

Published: March 10, 2020 at 9:05 a.m. ET

By 

Tomi Kilgore

 

Referenced Symbols

• RCL
  -9.33% 
  CCL
  -2.50% 
  NCLH
  -6.86% 
  SPX
  +1.19% 

Cruise line stocks have plunged on concerns over the coronavirus outbreak, but SunTrust Robinson Humphrey analyst Patrick Scholes said they could still fall further, as his analysis of proprietary data on forward bookings volumes and pricing from large travel agencies and other sources suggests no evidence that volumes have stabilized. As of last Thursday for the prior seven days, data suggests industry-wide bookings have fallen about 35% from a year ago, which is a deceleration from the past four-week period which averaged a decline of 25%. "While cruise stocks have taken a severe beating, we cannot conclusively say we have reached the bottom," Scholes wrote in a note to clients. He cut his share price targets for Royal Caribbean Cruises Ltd. RCL, -9.33% to $102 from $164, for Carnival Corp. CCL, -2.50% to $37 from $51 and for Norwegian Cruise Line Holdings Ltd. NCLH, -6.86% to $45 from $66. Over the past month through Monday, shares of Royal Caribbean have tumbled 56.0%, Carnival have plunged 48.0% and Norwegian have plummeted 61.2%, while the S&P 500 SPX, +1.19% has shed 18.1%.

[Boatsie]

2 hours ago, 20165 said:

Bankruptcy is also my concern, although i think we have a ways to go before we get close to that...  I got burned before with AA stock before they declared bankruptcy.  But RCL is tempting at this low level.  Hard decision.

 

 

All these cruise companies went into this situation up to their eyeballs in huge debt.  They were relying on their consistent stream of new revenue to stay afloat to begin with. That’s not the greatest business model to hook your retirement star to—especially given the current situation and how much more debt they’re going to need to see them through and have to pay back later (albeit at lower interest rates thanks to the Fed).

 

At best, cruise stocks might be a tempting speculative play...but for a retirement portfolio??...nope.  Not while there are better bargains ripe for the picking.

[Oceansaway17]

23 hours ago, AZDivers said:

 MSNBC and advice is an oxymoron.

 

I think you meant to say CNBC, which is a financial channel.

 

MSNBC is pundits peddling nonsense.

Oops yes CNBC.

[NavyCruiser]

Carnival now below $9, PE under 2

Royal under $20 earlier in the day, PE barely above 2

Looks pretty low....

[Newleno]

On 3/10/2020 at 5:15 PM, Oceansaway17 said:

Oops yes CNBC.

I thought it was a joke not a mistake about msnbc, so I had to take back the like!

Edited March 18, 2020 by Newleno

[orville99]

On ‎3‎/‎9‎/‎2020 at 2:59 PM, Oceansaway17 said:

Be conservative and watch MSNBC for continuing advice.

 

 

Wow, I never thought I'd ever see the words conservative and MSNBC in the same sentence - perhaps CNBC would have been a better choice