I usually never give investment advice but....
- Thread starter Tito_Jackson
- Start date
Thank you for this... I'm learning a lot about this stuff...
Definitely will watch
Thanks
Carnival Sells 8 Percent Stake to Saudis After Dire Financial Warning
Rosie Spinks, Skift
SkiftApril 6, 2020
Carnival Sells 8 Percent Stake to Saudis After Dire Financial Warning
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Carnival Corp. stealthily filed its first quarter earnings on Friday, giving insight into a company on its knees as it faces an unprecedented crisis, and disclosing a long list of risk factors to its business going forward.
The world’s largest cruise company — which has found itself at the epicenter of the Covid-19 crisis with incidents across its fleet — paused sailings on Mar. 13 after both the U.S. State Department and the Centers for Disease Control advised against cruising. It has approximately 6,000 passengers on vessels still at sea, which it is struggling to find ports for, creating a PR nightmare as well as a genuine risk of life to crew and passengers on board.
The company’s share price has been down 80 percent since the beginning of the year. On Monday, shares jumped 25 percent when Saudi Arabia’s public investment fund took a 8.2 percent stake in the company.
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“We have never previously experienced a complete cessation of our cruising operations, and as a consequence, our ability to be predictive regarding the impact of such a cessation on our brands and future prospects is uncertain,” Friday’s filing read. “In particular, we cannot predict the impact on our financial performance and our cash flows required for cash refunds of deposits as a result of the pause in our global fleet cruise operations, which may be prolonged, and the public’s concern regarding the health and safety of travel, especially by cruise ship, and related decreases in demand for travel and cruising.”
The Friday afternoon filing was not prefaced with any advance notice to investors or press, nor has a time for an earnings call been announced to discuss the results. Both depart from norms for public companies issuing Securities and Exchange filings. Carnival told Skift on Monday that an earnings call for its first quarter — which ended on Feb. 29 — has not yet been scheduled.
Profit fell from $336 million in the first quarter of 2019, to a loss of $781 million in the first quarter of 2020. Earnings per share were a negative $1.14, compared to $0.48 in the same period last year. The company said that not only were forward bookings for the remainder of 2020 “significantly behind the prior year,” but that even bookings for the first half of 2021 are down. It reported having $4.7 billion in customer deposits as of Feb. 29.
It’s worth noting that the period covered by the filing is before the cruise industry suspended all voyages in mid-March. The company still generated $916 million in cash from its operating activities during the first quarter, indicating that its losses in the second quarter — during which no cruises are likely to sail — could be much steeper.
The company is scheduled to take delivery of 16 new vessels through 2025 — with four of those due this year, now likely delayed, according to the report. The company — which was left out of the U.S. government’s bailout bill — is seeking to raise $6 billion cash, after already maxing out a $3 billion credit facility. It estimates that it needs $1 billion in cash per month to continue operations.
The risk factors listed on the report make for stunning reading, and range from being unable to accept government assistance “without adversely [impacting] our business and operations,” to the lawsuits from passengers onboard the Grand Princess, who are arguing the company did not notify them of prior cases on board the ship, as well as other potential coronavirus-related suits.
The filing also named the company’s ongoing probation obligations for environmental crimes, the result of a plea agreement with the U.S. Department of Justice. “We remain fully committed to satisfying those obligations. However, COVID-19 presents enormous challenges for the Company, which could result in material adverse impacts.”
Then there is mammoth price tag of bringing ongoing cruises to a safe conclusion, which it intends to complete by the end of April; repatriating guests to their homes all over the world; assisting crew who are unable to return home with finding food and housing; sanitizing ships; and enacting new hygiene measures onboard. New health and hygiene requirements imposed by regulators could “may be costly and take a significant amount of time to implement across our global fleet cruise operations.”
Lastly, there’s the optics, which cast genuine doubt on the idea that cruising will bounce back as a sector in the same way that, say, hotels and airlines might once the crisis has abated.
“Due to the outbreak of COVID-19 on some of our ships, and the resulting illness and loss of life in certain instances, we have been the subject of negative publicity which could have a long term impact on the appeal of our brands, which would diminish demand for vacations on our vessels. We cannot predict how long the negative impact of recent media attention on our brands will last, or the level of investment that will be required to address the concerns of potential travelers through marketing and pricing actions.”
Damn! In bed with the Saudis to stay afloat.
Interesting times to be seen in the coming weeks.
Saudis or China these days.
Carnival Corporation & plc is a British-American cruise operator, currently the world's largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands. A dual-listed company, Carnival is composed of two companies, US-based Carnival Corporation and UK-based Carnival plc, which function as one entity. Carnival Corporation is listed on the New York Stock Exchange and Carnival plc is listed on the London Stock Exchange. As such, Carnival is the only company in the world to be included in both the S&P 500 and FTSE 100 indices.
The US entity Carnival Corporation is incorporated in Panama,[7] and its operational headquarters are located in the city of Doral, Florida. The UK entity Carnival plc is based in Southampton.
The US entity Carnival Corporation is incorporated in Panama,[7] and its operational headquarters are located in the city of Doral, Florida. The UK entity Carnival plc is based in Southampton.
I have very little stock experience and not qualified to give advice but I'm going to invest in Pelaton. In the last week i've had 4 different people mention that they bought one. This pandemic is the perfect environment for people to get and use one.
Just sharing
Jumped in on Energy Transfer LP last week when it was at $4 and some change.
Right now its at $5.80. Back in January before the virus hit, it was at $13.69.
i rarely see this stock go higher than $16, but if Mexico agrees with this deal that OPEC is
trying to push with the scaling back of oil production, expect gas prices to rise as well as this stock.
By July it'll be a quick in and out for me.
Right now its at $5.80. Back in January before the virus hit, it was at $13.69.
i rarely see this stock go higher than $16, but if Mexico agrees with this deal that OPEC is
trying to push with the scaling back of oil production, expect gas prices to rise as well as this stock.
By July it'll be a quick in and out for me.
What's a real platform?
made more with telehealth companies
I posted earlier about TDOC
i bought at 57$ its now at 180
only regret is that i didnt buy more at 57
you're doing way better than most. I think the bottom has happened. they will be dips but not in the double digits. good time to buy
i think we are in for a lot more hurt...
this business with oil
has reverberations
big oil going out of business will kill a lot of industries
IMHO, we are no where near the bottom yet
we will see. i have amazon stock so the dips arent having any effect.
Tito you got any good stocks news to share... I'm using Stash
Can we get an update, @Tito_Jackson ..
What's your take on the market now... shit seems to make no sense..
I set up my M1 account right when the market was around 19k. Before my funds transferred, it shot up to 23k...then said the money never went through.. which I was cool with. Now I'm thinking of waiting for another dip.
What's your take on the market now... shit seems to make no sense..
I set up my M1 account right when the market was around 19k. Before my funds transferred, it shot up to 23k...then said the money never went through.. which I was cool with. Now I'm thinking of waiting for another dip.
I would NOT go all in right now. This is a phony rally being propped up by federal money.
the market will be back to the lows of the COVID-19 scare once the next administration is selected.
the market will be back to the lows of the COVID-19 scare once the next administration is selected.
A few of you have asked for an update. The overall percentage of growth is 0%. So, despite all of the craziness, our diverse stock picks have kept us from feeling the heat. Disney and Vanguard are our low performers. Apple and Google are stable and will bounce back in time.
I would strongly suggest looking at airlines. They will be the comeback story of the year.
| Stock | 27-Jan | 30-Apr | % Growth |
| AAPL | 308.95 | 291.10 | -6% |
| MSFT | 162.28 | 178.11 | 9% |
| AMD | 49.26 | 52.85 | 7% |
| NFLX | 342.88 | 418.14 | 18% |
| TSLA | 558.02 | 773.52 | 28% |
| VOO | 297.23 | 265.89 | -12% |
| GOOG | 1433.9 | 1329.91 | -8% |
| GOOGL | 1431.73 | 1327.25 | -8% |
| DIS | 135.9 | 107.60 | -26% |
I would strongly suggest looking at airlines. They will be the comeback story of the year.
Please have your stop loss or trailing stop loss set today. There will be opportunities to sell high and repurchase low today.
Especially with airlines. 1st quarter numbers are worse than expected. So, this will scare alot of people driving the prices down. But, you being prepared and the smart aggressive investor will be ready to grab them up before it rebounds.
This is the movie "Trading Places" happening today (and next few days) in real life.
Especially with airlines. 1st quarter numbers are worse than expected. So, this will scare alot of people driving the prices down. But, you being prepared and the smart aggressive investor will be ready to grab them up before it rebounds.
This is the movie "Trading Places" happening today (and next few days) in real life.
Bump
I am thinking about getting Delta. They are at $22 and was up around $60 in Feb.
They are about to reopen Vegas limited so I'm thinking the airplanes will start moving soon.
What do you think?
Absolutely!!! My investment strategy is different from many of those on this board. I play the long game. Airline travel is not going anywhere. You can look how many in society are handling the pandemic. Most do not care about social distancing. People are at beaches, parks, etc. The same will be for airlines and other vacation destinations.
Delta is good because they are the most stable of all airlines. There are 1/3 of February's price. And they pay quarterly dividends.
You will be all smiles in the future while many are going to say "I wish I jumped on it when I had the chance."
Delta is good because they are the most stable of all airlines. There are 1/3 of February's price. And they pay quarterly dividends.
You will be all smiles in the future while many are going to say "I wish I jumped on it when I had the chance."
Yea I pulled the trigger at $22 on Delta yesterday.
Here is an update regarding the initial stock picks. If you stayed on board, you are still 6% positive versus -5% following S&P 500 Index. This is hella good and what JP Morgan charges crazy money for. If your 401Ks would have followed this, you all would be in an excellent position.
Disney is killing us though!! Google is steadily getting back to baseline. VOO is the Vanguard 500 index tracker. So, it is going to do as well or a little better than the S&P 500 which is down -5%.
I will be making some recommendations tomorrow regarding selling and buying. Right now I am heavy on airlines.
For those who can, be prepared to have $100.00 ready for some options trading. If you are too uncomfortable, open a TD Ameritrade Account and we will do the trades using "paper money." This way you can practice without risking your real money.
Disney is killing us though!! Google is steadily getting back to baseline. VOO is the Vanguard 500 index tracker. So, it is going to do as well or a little better than the S&P 500 which is down -5%.
| Stock | 27-Jan | 4-Jun | % Growth |
| AAPL | 308.95 | 322.32 | 4% |
| MSFT | 162.28 | 182.92 | 11% |
| AMD | 49.26 | 52.63 | 6% |
| NFLX | 342.88 | 414.33 | 17% |
| TSLA | 558.02 | 864.38 | 35% |
| VOO | 297.23 | 286.29 | -4% |
| GOOG | 1433.9 | 1412.18 | -2% |
| GOOGL | 1431.73 | 1414.30 | -1% |
| DIS | 135.9 | 123.69 | -10% |
For those who can, be prepared to have $100.00 ready for some options trading. If you are too uncomfortable, open a TD Ameritrade Account and we will do the trades using "paper money." This way you can practice without risking your real money.
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