Saudi Arabia Sovereign Wealth Fund buys 8.2% CCL

[wesport]

Interesting article on CCL.  CCL has enough liquidity with zero sailings until November. This is the worst cast scenario, but most assume there might be 25% sailing this summer. 

[DaveOKC]

I saw this on CNBC a few minutes ago - very good news IMO.  Stock up $2 or over 20% today.

 

Edited April 6, 2020 by DaveOKC

[JRG]

I saw this too.    Oil rich foreign states could be the solution to the cruise line survival question..

 

 

Crude for thought...

 

 

[CruiserBruce]

And that is how a company gets the $$$ to handle this crisis, for all the people thinking a business just has hundreds of millions or billions just sitting in their checking accounts to pay tens or hundreds of thousands of refunds. 

[Nymich]

1 hour ago, CruiserBruce said:

And that is how a company gets the $$$ to handle this crisis, for all the people thinking a business just has hundreds of millions or billions just sitting in their checking accounts to pay tens or hundreds of thousands of refunds. 

They should have enough to cover mine. LoL

[HamOp]

Here is a link to the story

https://finance.yahoo.com/news/carnival-sells-8-percent-stake-173028049.html

[Krazy Kruizers]

Thank you for the link HamOp.

[St Pete Cruiser]

It is scary for us little investors.  My 100 shares bought at $52 a share are down about $4000, which I never thought possible.  To think someone (Saudi or anyone) with very deep pockets could buy control of Carnival at 20 cents on the dollar, does not make me happy.

[CruiserBruce]

13 minutes ago, St Pete Cruiser said:

It is scary for us little investors.  My 100 shares bought at $52 a share are down about $4000, which I never thought possible.  To think someone (Saudi or anyone) with very deep pockets could buy control of Carnival at 20 cents on the dollar, does not make me happy.

8% is not "control ". Remember, the standard goal for any minority stockholder is for the stock to make a profit, or gain.

[gatour]

Is this issuance of new stock?  If it bought existing stock then it really doesn't help Carnival's cash position as the proceeds went to the entities that owned the stock.

 

Doing a bit more looking around, it looks like the bought existing stock, so the Saudi's are betting that Carnival will survive and the stock price will rebound.

Edited April 6, 2020 by gatour

[CruiserBruce]

15 minutes ago, gatour said:

Is this issuance of new stock?  If it bought existing stock then it really doesn't help Carnival's cash position as the proceeds went to the entities that owned the stock.

 

Doing a bit more looking around, it looks like the bought existing stock, so the Saudi's are betting that Carnival will survive and the stock price will rebound.

Or if not newly issued stock, it could be stock held by Carnival Corp in a couple of ways.

[npcl]

31 minutes ago, gatour said:

Is this issuance of new stock?  If it bought existing stock then it really doesn't help Carnival's cash position as the proceeds went to the entities that owned the stock.

 

Doing a bit more looking around, it looks like the bought existing stock, so the Saudi's are betting that Carnival will survive and the stock price will rebound.

It was part of the 62.5 million new shares that Princess just sold along with the Bonds.

[HamOp]

Top 10 Owners of Carnival Corp

Stockholder	Stake	Shares owned	Total value ($)	Shares bought / sold	Total change
Truist Bank (Private Banking)	7.34%	38,669,095	1,293,867,919	+38,477,792	+20,113.53%
Capital Research & Management Co....	7.26%	38,236,944	1,279,408,146	-8,032,204	-17.36%
The Vanguard Group, Inc.	6.11%	32,213,402	1,077,860,431	+1,818,047	+5.98%
PRIMECAP Management Co.	4.18%	22,016,482	736,671,488	-37,200	-0.17%
BlackRock Fund Advisors	3.48%	18,305,771	612,511,098	+752,148	+4.28%
SSgA Funds Management, Inc.	3.41%	17,947,440	600,521,342	+231,771	+1.31%
Invesco Advisers, Inc.	3.40%	17,922,131	599,674,503	-1,069,659	-5.63%
Northern Trust Investments, Inc.(...	2.95%	15,542,175	520,041,176	-398,778	-2.50%
Capital Research & Management Co....	1.95%	10,277,014	343,868,888	-4,373,472	-29.85%
Managed Account Advisors LLC	1.45%	7,638,480	255,583,541	-2,889,766	-27.45%

Top 10 Mutual Funds Holding Carnival Corp

Mutual fund	Stake	Shares owned	Total value ($)	Shares bought / sold	Total change
American Funds Income Fund of Ame...	2.36%	12,417,000	415,472,820	-1,460,000	-10.52%
American Balanced Fund	2.28%	12,000,000	401,520,000	0	0.00%
Vanguard Total Stock Market Index...	2.16%	11,392,498	381,192,983	+213,425	+1.91%
Washington Mutual Investors Fund	2.15%	11,350,707	379,794,656	+597,907	+5.56%
Vanguard 500 Index Fund	1.58%	8,326,859	278,616,702	+224,719	+2.77%
Vanguard PRIMECAP Fund	1.47%	7,721,565	258,363,565	0	0.00%
American Mutual Fund	1.35%	7,111,453	237,949,217	-586,695	-7.62%
Capital Income Builder	1.14%	6,000,000	200,760,000	-1,673,500	-21.81%
Invesco Comstock Fund	0.83%	4,359,453	145,867,297	0	0.00%
SPDR S&P 500 ETF	0.81%	4,262,804	142,633,422	+3,374	+0.08%

 

 

 

 

 

 

 

 

[St Pete Cruiser]

1 hour ago, CruiserBruce said:

8% is not "control ". Remember, the standard goal for any minority stockholder is for the stock to make a profit, or gain.

Yes, I realize.  Think about the value of Carnival with 105 cruise ships plus all the rest.  Why build new ships when you can buy someone else's at 20 cents on the dollar?  For that matter, if this situation persists, there will be some great deals on the companies that are forced to liquidate.  

[npcl]

2 hours ago, St Pete Cruiser said:

Yes, I realize.  Think about the value of Carnival with 105 cruise ships plus all the rest.  Why build new ships when you can buy someone else's at 20 cents on the dollar?  For that matter, if this situation persists, there will be some great deals on the companies that are forced to liquidate.  

Considering the asset value minus liabilities is about 20 billion and market cap is a close to 7 billion, more like 30 cents on the dollar.

[bouhunter]

9 hours ago, wesport said:

but most assume there might be 25% sailing this summer. 

No, they won't.

[CruiserBruce]

5 hours ago, npcl said:

It was part of the 62.5 million new shares that Princess just sold along with the Bonds.

I don't think Princess sold any stock. Carnival Corp did.

[npcl]

5 minutes ago, CruiserBruce said:

I don't think Princess sold any stock. Carnival Corp did.

Ya I know .  Meant  Carnival  don't know why I typed Princess.

[USN59-79]

The story said that Carnival still has 6000 passengers at sea.  Is that true?  What ships are still unable to disembark their passengers?

[Himself]

15 hours ago, St Pete Cruiser said:

It is scary for us little investors.  My 100 shares bought at $52 a share are down about $4000, which I never thought possible.  To think someone (Saudi or anyone) with very deep pockets could buy control of Carnival at 20 cents on the dollar, does not make me happy.

If I were an investor I do not think I would be very Happy about it.

[CruiserBruce]

45 minutes ago, Himself said:

If I were an investor I do not think I would be very Happy about it.

I think you are missing the point. This money is giving Carnival the ability to weather this storm. We are investors, and think it is a good idea. This is a common and appropriate action to save the Company and our investment. It will allow Carnival to refund everyone's monies, and pay the bills for the short term. The Saudis are seeking to have Carnival survive, not throwing money away.

 

When you buy stock, there is a significant chance it could go down. Nobody can guarantee it will only go up.

[Despegue]

Great News!

As I am sometimes flying members of the Saudi Royal family, I will ask for a discount on my next HAL cruise 🤣🙃😇🥳

 

Keep Safe everyone. Together we will weather this storm. We WILL meet again.

[sfaaa]

8 hours ago, Himself said:

If I were an investor I do not think I would be very Happy about it.

Many of us are cruisers first and investors second. I welcome this Saudi move as a vote of confidence on Carnival as a going concern.