Carnival shares - Advice please

[Tracyjj0]

Hi can anyone give me some advice about how to buy Carnival shares? I've done lots of browsing, and have decided to buy 100 shares, possibly via Hargreaves Lansdown. 

What I've not worked out, is how to pay for them. The price of the shares fluctuates during the day, so how much should I deposit into my account. I believe they take any fees direct from the account and can sell your shares to cover fees - I don't want this to happen as I need to hold 100 for the obc benefit.

Basically what I'm asking is how much extra I should put in the account to cover fees?

Am I over-thinking this and confusing myself? (Hahaha, not difficult!!)

[terrierjohn]

18 minutes ago, Tracyjj0 said:

Hi can anyone give me some advice about how to buy Carnival shares? I've done lots of browsing, and have decided to buy 100 shares, possibly via Hargreaves Lansdown. 

What I've not worked out, is how to pay for them. The price of the shares fluctuates during the day, so how much should I deposit into my account. I believe they take any fees direct from the account and can sell your shares to cover fees - I don't want this to happen as I need to hold 100 for the obc benefit.

Basically what I'm asking is how much extra I should put in the account to cover fees?

Am I over-thinking this and confusing myself? (Hahaha, not difficult!!)

I think you probably are, I would imagine your on line investment company will honour your request to buy 100, and the set up advice should contain a request as to how you will pay any ongoing fees as well as the purchase fees, and how much you need to deposit. But they all have a help line for you to ring if you need extra assistance.

Edited September 3, 2021 by terrierjohn

[crompton21]

Hello, not to be taken as financial advice!

 

If you hold your shares in a HL dealing account (not SIPP or ISA) then currently you will not pay any fees.  You will pay tax on total dividends received of more than £2000 and Capital gains of more than £12300 were you to sell the shares and make that much profit ( both on an annual basis)

 

Held in an isa you will not have either of those taxes, but you will pay a monthly fee for the privilege of them being in an isa account.  If you do not feel that it is likely that you will breach the annual dividend allowance or the annual Capital gains allowance then it may be cheaper to just hold the shares in a dealing account.

 

If you choose to go ahead, then you will pay the share price plus .5% stamp duty and a one off dealing fee.  As of now 100 X £15.80 so £1580 plus £7.90 stamp duty and £11.95 share dealing fee, £1599.85 in total.  Were you to put in £1650 you could purchase the shares and then withdraw the balance of cash that you haven't spent.

[Mad4WDW]

Personally I wouldn’t bother, there’s no point if you’re just buying them for the onboard credit perk.

 

The shares are going to be delisted off the UK stock exchange soon so you’ll most likely lose money when you’re forced to sell them back

[crompton21]

5 minutes ago, Mad4WDW said:

The shares are going to be delisted off the UK stock exchange soon so you’ll most likely lose money when you’re forced to sell them back

 

That isn't actually a statement of fact.

 

[Mad4WDW]

You’ve probably got access to the same news in the HL app that I have. That’s how I read it. Either way buying these shares is not a wise choice imo

[wowzz]

28 minutes ago, Mad4WDW said:

You’ve probably got access to the same news in the HL app that I have. That’s how I read it. Either way buying these shares is not a wise choice imo

That's really interesting. Thanks for posting.

Can I be forced to sell my shares if I do not wish to do so ? And how will the price be determined?

[majortom10]

Just now, wowzz said:

That's really interesting. Thanks for posting.

Can I be forced to sell my shares if I do not wish to do so ? And how will the price be determined?

Yes you are forced to sell them and the company decides what price they pay. We had shares in Thomson holidays and TUI decided to buy shares and all we got is a letter telling us how much per share we would get and asking us how we would like the money paid.

[wowzz]

1 minute ago, majortom10 said:

Yes you are forced to sell them and the company decides what price they pay. We had shares in Thomson holidays and TUI decided to buy shares and all we got is a letter telling us how much per share we would get and asking us how we would like the money paid.

Looks like I will need to claim my obc for our May cruise straight away then !

[majortom10]

Just now, wowzz said:

Looks like I will need to claim my obc for our May cruise straight away then !

Wont make any difference because even if you apply and its granted if you are no longer a shareholder prior to your cruise the OBC will be taken off your account.

[majortom10]

I get more and more an impression that especially cruising on Cunard a lot that Carnival dont want UK cruisers on their ships. They get better offers i.e. free drinks packages and gratuities for grill passengers that UK cruisers dont get. With no foundation just a hunch I can see Cunard, which is already $based onboard losing its UK cruising from Southampton and becoming a 100% US based and can see them selling P&O Cruises.

Edited September 3, 2021 by majortom10

[wowzz]

1 minute ago, majortom10 said:

Wont make any difference because even if you apply and its granted if you are no longer a shareholder prior to your cruise the OBC will be taken off your account.

I suspected that might be the case, so I will lose out twice. Get less back than I paid for the shares,  and no obc.

[Host Hattie]

45 minutes ago, Mad4WDW said:

You’ve probably got access to the same news in the HL app that I have. That’s how I read it. Either way buying these shares is not a wise choice imo

This is dated June and the UK stock purchase is complete so I don't think this means what you think it does.

[wowzz]

Just being pedantic for a moment, I cannot find anywhere that Carnival are buying all their UK shares.

They have sold US shares, and the cash generated will be used to buy UK shares, but that is not  the  same as saying they will buy 100% of UK shares.

[wowzz]

1 minute ago, Host Hattie said:

This is dated June and the UK stock purchase is complete so I don't think this means what you think it does.

Exactly, which reinforces my previous post.

[davecttr]

Carnival UK is still quoted on our market as of this morning.. I would lose money if there was a compulsory purchase but the loss would be outweighed by the credit I have received.

[Tracyjj0]

Oh, goodness. Thanks for all the replies. Wish I'd bought these shares when I could have had 100 for £900 last year, but I wasn't brave enough! Might throw caution to the wind and buy them anyway, I've dithered long enough 😂

[Tracyjj0]

1 hour ago, crompton21 said:

Hello, not to be taken as financial advice!

 

If you hold your shares in a HL dealing account (not SIPP or ISA) then currently you will not pay any fees.  You will pay tax on total dividends received of more than £2000 and Capital gains of more than £12300 were you to sell the shares and make that much profit ( both on an annual basis)

 

Held in an isa you will not have either of those taxes, but you will pay a monthly fee for the privilege of them being in an isa account.  If you do not feel that it is likely that you will breach the annual dividend allowance or the annual Capital gains allowance then it may be cheaper to just hold the shares in a dealing account.

 

If you choose to go ahead, then you will pay the share price plus .5% stamp duty and a one off dealing fee.  As of now 100 X £15.80 so £1580 plus £7.90 stamp duty and £11.95 share dealing fee, £1599.85 in total.  Were you to put in £1650 you could purchase the shares and then withdraw the balance of cash that you haven't spent.

Thank you for this your reply, this is exactly the clarification that I needed 😄

[Mad4WDW]

Googling this seems to indicate that Carnival have just purchased a tranche of shares but not the whole lot so no delisting 👍

 

Current perks info attached for the original poster if they’re still interested. 

 

Carnival Shareholder Benefits 2019-2020.pdf

[crompton21]

1 hour ago, wowzz said:

I suspected that might be the case, so I will lose out twice. Get less back than I paid for the shares,  and no obc.

The shares are dual listed, the most likely result of no longer listing in the U.K. would be that you would then own 100 Carnival corp shares, which if that happened today would make you a profit.  Very different to a takeover where the company disappears from a listing anywhere.

 

The obc is paid on holding 100 of either share class.  At times it has been cheaper to buy 100 of the American shares rather than the U.K. ones, but historically they have been around the same price.  Currently the American ones are about 10% more expensive which makes what they did very sensible.

 

As to whether the expense of a dual listing makes sense, that is perhaps questionable, but not where we currently are.

[Tracyjj0]

I bit the bullet! I now own 100 shares! Aiming to hold them for at least 5 years, so here's hoping it's a good investment, but if it all goes boobies up it's not the end of the world 🤣

[picsa]

3 hours ago, majortom10 said:

With no foundation just a hunch I can see Cunard, which is already $based onboard losing its UK cruising from Southampton and becoming a 100% US based and can see them selling P&O Cruises.

Although as P&O Cruises is just a brand name which Carnival applies to one of its products and is not a separate company, are they really likely to sell the brand name? And would they sell the ships with the brand name (or reuse them for one of their other brands) and if not who would want to buy just a name on its own?
 

So operating it as a brand name and not a company tied to the UK with UK regulations, then what is the advantage to selling it? Whilst British people continue to want to sail from the UK because they don’t want to fly, and mix with other English speaking passengers AND don’t want to pay the exorbitant $ prices for alcohol and everything else on board, then operating a UK brand makes some commercial sense.

[terrierjohn]

3 hours ago, majortom10 said:

 and can see them selling P&O Cruises.

Good, I hope RCI  are still interested, they are a much better run cruise company.