Carnival offers common stock

[jphilli5]

I tried to act when the stock went below $10, but: a) my brokerage delayed funds availability, and b) I work at a firm that requires me to disclose/pre-approve my personal trading activities. By the time I actually was able to secure a position, it was at $14.

 

Cringing now that price has gone back down, but I purchased solely for the OBC-- couldn't care less how the stock performs. With 45% market share, this company isn't going anywhere. While dividends would be nice, I'm just hoping they don't suspend the OBC perk. 

[jimbo5544]

1 hour ago, PaulieG13 said:

I bought 100 shares of CUK 12 days ago at $9.  I had a limit order in to buy again at $10 but looking at it drop this morning, I pushed that limit order down to $8.

 

For the OBC alone, it is worth it at that price to me. It may take a while, but i feel the shares will get back to at least $30 at some point. Then I could sell off excess and still keep 100 shares for OBC. 

 

Hoping that Carnival doesn't stop offering that benefit!

I would think it would def be a consideration at some point

[ezd222]

On 3/31/2020 at 9:08 AM, easykruz said:

THIS is really good news, because Carnival will be in a better position when all this is over.  And we will continue to enjoy cruising again.

 

Um no its not. The coupon rate on the debt is hideous (12.5%).  Their is a reason why demand was no high for the bonds. Because stable large corporations don't give out those kind of rates unless they're desperate.

[john91498]

And the call is 2023. Not a lot of time to recoup.

[gkbiiii]

Royal Caribbean has basically gutted the Shareholder benefit, why do you assume, that Carnival won't do the same?

[jimbo5544]

https://www.cruiseindustrynews.com/cruise-news/22721-carnival-corp-announces-pricing-of-62-500-000-shares-of-common-stock.html

[Jim and Monika]

I would be shocked if they stopped the credit. It is a benefit to those who sail and I have to believe it helps fill ships. The OBC it generates is also spent on the ship. They make a lot of money onboard, they want to give everyone a reason to cruise. The cost of the cruise is set by demand. Again, they want to sail full, if they can sail full and charge more for the cruise due to demand, they make more money.

 

Just my uneducated opinion

[Purvis1231]

 I am afraid Carnival is planning on filing for bankruptcy if cruising is not resumed quickly. Even if it is they still may have to file for bankruptcy to help protect themselves from all the lawsuits that will be coming from all the ships hit by COVID-19 and other lawsuits about a the cancelations, from vendors, and a host of other reasons. 

Edited April 2, 2020 by Purvis1231
typo

[ricew001]

22 hours ago, PaulieG13 said:

I bought 100 shares of CUK 12 days ago at $9.  I had a limit order in to buy again at $10 but looking at it drop this morning, I pushed that limit order down to $8.

 

For the OBC alone, it is worth it at that price to me. It may take a while, but i feel the shares will get back to at least $30 at some point. Then I could sell off excess and still keep 100 shares for OBC. 

 

Hoping that Carnival doesn't stop offering that benefit!

We tried to buy when it hit $8 but my bank messed up the paperwork.🤬  So we bought about 63 shares at $13. Then I bought about 8 shares at 12. And then 30 more yesterday at 9.99. But it closed at 8.80 for the day. However we wanted the credit and feel sure the cruise industry will rise again.

[MRVEGAS711]

39 minutes ago, Purvis1231 said:

 I am afraid Carnival is planning on filing for bankruptcy if cruising is not resumed quickly. Even if it is they still may have to file for bankruptcy to help protect themselves from all the lawsuits that will be coming from all the ships hit by COVID-19 and other lawsuits about a the cancelations, from vendors, and a host of other reasons. 

Agreed. It makes business sense. Carnival will be back but to seek protection allows them to keep all your money thats tied up. They will worry about public relations at a later date.

[PaulieG13]

45 minutes ago, ricew001 said:

We tried to buy when it hit $8 but my bank messed up the paperwork.🤬  So we bought about 63 shares at $13. Then I bought about 8 shares at 12. And then 30 more yesterday at 9.99. But it closed at 8.80 for the day. However we wanted the credit and feel sure the cruise industry will rise again.

Both CCL and CUK are heading south today so far. My Limit order hit right before closing last night for 50 shares at $8 (CUK).  

Might have to put another Limit order in for $5 per share. So far, i only have CUK stock since it has been cheaper to get and still gets me the OBC.  May have to "diversify" and buy CCL if the price keeps dropping.

[angiem0217]

So what happens to your stock if they file for bankruptcy? Do you just lose it?


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[Eli_6]

I am starting to get nervous.  I dumped some of my RCL stock on Friday when it went from low 20s back up to low 40s, although I kept about 90 shares.  I was going to get rid of more this morning, but RCL went back down to low 30s.  Carnival and NCL have stayed low (under $15) but if they go back up to high teens, I think I may get rid of about half of it.   

[Eli_6]

On 4/2/2020 at 7:27 PM, angiem0217 said:

So what happens to your stock if they file for bankruptcy? Do you just lose it?


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Usually it is rendered worthless. Secured debtors have priority. Sometimes old stock holders are able to trade shares in the new company depending on the terms of the reorganization, but this is the exception rather than the rule.