Carnival Corporation Stock Question

[NordicPrince]

2 hours ago, cruisemom42 said:

 

I beg to disagree. The perk is hardly inconsequential at the recent stock price. For the price I just paid for my 100 shares, I will earn back the money spent in just 4 cruises of 14-days or longer (I tend to avoid shorter cruises....)

 

There has been zero talk about changing the OBC -- in fact, I believe it has already been confirmed through mid-2021. Too much reading of tea leaves on these forums sometimes.

 

I expect my 'gain' to come from a risk in stock price over time, having purchased at below $9/share. The dividend is somewhat inconsequential to me.

 

Of course the stock could become worthless in a corporate reorganization, in which case it would take you awhile to recoup your loss. Right now you're not investing you're speculating in a company that has no current revenue.

[cruisemom42]

1 hour ago, NordicPrince said:

Of course the stock could become worthless in a corporate reorganization, in which case it would take you awhile to recoup your loss. Right now you're not investing you're speculating in a company that has no current revenue.

 

Either way it's a small loss to me should that happen, and the value has gone up about 60% since I purchased it -- were I to sell now.

 

[ontheweb]

5 hours ago, NordicPrince said:

Of course the stock could become worthless in a corporate reorganization, in which case it would take you awhile to recoup your loss. Right now you're not investing you're speculating in a company that has no current revenue.

People are still buying cruises if you believe the people on these boards, so there is some revenue coming in. Plus they did get a huge influx of cash from Saudi Arabia.

[rkacruiser]

10 minutes ago, ontheweb said:

People are still buying cruises if you believe the people on these boards, so there is some revenue coming in. Plus they did get a huge influx of cash from Saudi Arabia.

 

If those cruises do not sail, that will not be revenue that is realized.  Those accounts will become liabilities for the Corporation.  

[ontheweb]

11 hours ago, rkacruiser said:

 

If those cruises do not sail, that will not be revenue that is realized.  Those accounts will become liabilities for the Corporation.  

It is still revenue coming in now. And if it turns into a "Ponzi scheme", it's those buying at the end who will suffer, not those waiting for refunds now.

[LP Dad]

If someone had invested 5000 USD in the market 5 years ago today, current net values are as follows, depending on what was purchased:

 

Amazon                   27 301

American Express     6342

Vanguard 500             6720

Caterpillar                   7809

Carnival                       1732

 

This assumes dividend reinvestment. I am relying on a publicly-available calculator, which only has last week's prices. I used 5000 as that was the approximate investment required to qualify for shareholder OBC (at the time).

 

CCL investors, those have been expensive free drinks.

 

LPD

 

[Georgeny]

22 hours ago, cruisemom42 said:

 

I beg to disagree. The perk is hardly inconsequential at the recent stock price. For the price I just paid for my 100 shares, I will earn back the money spent in just 4 cruises of 14-days or longer (I tend to avoid shorter cruises....)

 

There has been zero talk about changing the OBC -- in fact, I believe it has already been confirmed through mid-2021. Too much reading of tea leaves on these forums sometimes.

 

I expect my 'gain' to come from a risk in stock price over time, having purchased at below $9/share. The dividend is somewhat inconsequential to me.

 

 

I wish you well but NCL has announced that they doubt they can continue.

 

Norwegian Cruise Line warned that its upcoming financial statements will carry a statement detailing "substantial doubt" about its ability to continue as a "going concern" in the wake of the coronavirus pandemic, another sign of how the crisis is affecting the cruise industry."

 

They were in dire straights before all this, bled by hedge fund that ran them. This is just a convenient excuse.

[TJR_0323]

1 hour ago, Georgeny said:

I wish you well but NCL has announced that they doubt they can continue.

 

1 hour ago, Georgeny said:

They were in dire straights before all this, bled by hedge fund that ran them. This is just a convenient excuse.

What you failed to mention is NCL just made a stock offering and this forward looking statement is an SEC requirement. I wouldn't write them off quite yet!

[DFD1]

Form what I read this morning, it looks as though NCL also made a deal with an private equity firm for notes carrying 7% interest.

 

If any of the big three fails, It's likely to be NCL going first.

[KirkNC]

23 hours ago, cruisemom42 said:

 

I beg to disagree. The perk is hardly inconsequential at the recent stock price. For the price I just paid for my 100 shares, I will earn back the money spent in just 4 cruises of 14-days or longer (I tend to avoid shorter cruises....)

 

There has been zero talk about changing the OBC -- in fact, I believe it has already been confirmed through mid-2021. Too much reading of tea leaves on these forums sometimes.

 

I expect my 'gain' to come from a risk in stock price over time, having purchased at below $9/share. The dividend is somewhat inconsequential to me.

 

I agree.  We have received more in OBC over the years then we paid for the stock.

[KirkNC]

15 minutes ago, DFD1 said:

Form what I read this morning, it looks as though NCL also made a deal with an private equity firm for notes carrying 7% interest.

 

If any of the big three fails, It's likely to be NCL going first.

I agree which is why am am anxiously awaiting a refund from Oceania.  I received one with one more to go from them.