Many here said to buy Carnival Cruise...now suspending dividend.

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[ARCHIVED THREAD] - Many here said to buy Carnival Cruise...now suspending dividend.

Posted: 3/31/2020 9:08:15 AM EDT

I bought in, and honestly will probably buy some more for long term. But as of today, they have suspended their dividend and are offering more common stock to shorenuo their cash. They expect lots of coronavirus lawsuits.

Stock price is down again today, floating at $10/share.

https://www.marketwatch.com/story/carnival-to-suspend-dividend-and-stock-buybacks-expects-to-remain-in-compliance-with-debt-covenants-2020-03-31

Posted: 3/31/2020 9:25:07 AM EDT

[#1]

I bought some CCL 2 weeks ago along with DAL, XOM and PLXS.
A bit of a gamble but lets see what they look like in a year or so.
No risk, no reward.

Posted: 3/31/2020 9:36:15 AM EDT

[#2]

Lots of stuff on sale, I want to jump in on some, but I'm afraid some of these guys are going to go bankrupt or be de-listed and all your stocks will be wiped out. No chance to come back.

Obviously, you want to make good choices and pick ones that you don't think will completely crash and burn. (Figured that would be a response if I didn't say it)

Its a gamble.

Posted: 3/31/2020 10:38:28 AM EDT

[#3]

Good luck.

$11B in debt and no customers for the foreseeable future.

Posted: 3/31/2020 12:07:22 PM EDT

[#4]

Quote History

Quoted:

Good luck.

$11B in debt and no customers for the foreseeable future.

View Quote

That's the gamble. I didn't invest more than I would be upset to lose. Thought I would buy more today but have just been watching. The cruise industry does billions of business every year. They arn't going anywhere and when business resumes I think things will turn around.

Posted: 3/31/2020 1:18:31 PM EDT

[#5]

Quote History

Quoted:

That's the gamble. I didn't invest more than I would be upset to lose. Thought I would buy more today but have just been watching. The cruise industry does billions of business every year. They arn't going anywhere and when business resumes I think things will turn around.

View Quote

I’m a small business owner that loves taking my family on cruises.

But at this point, there’s no way I’m getting on one for at least 6 months, as there’s no way I can afford to be stuck on a ship for weeks with everyone refusing to let you dock.

Posted: 3/31/2020 1:54:40 PM EDT

[#6]

Investing in cruise lines is a massive gamble at the moment. With that said. Over the long term, the cruise industry isn't going anywhere. They may be in debt with no customers in the foreseeable future. But the ships themselves aren't exactly going to just sink. I have money in CCL, DAL and RDS. Three hard hit industries. If they don't go bankrupt, I stand to make 3-4x on my money long term. If they do go bankrupt. I still have 80% of my money in long term index funds that aren't going anywhere. If just one of them 3-4xs my money. And the other two go bankrupt. I break evenish. Worth the gamble to me.

The Market is all over the place but I'm feeling confident. I'm gonna be a thousandair by the time this is over.

Posted: 3/31/2020 2:51:53 PM EDT

[#7]

I'm wondering if any of them will file bankruptcy just to dump their debts and start over?
All at the creditor and shareholder expense...

Posted: 3/31/2020 3:03:23 PM EDT

[#8]

Its a gamble, at these prices as long as they don't go bankrupt youre GTG. I bought some and am gambling ill at least triple my money in a couple years, cash out and buy a index fund and let it grow at 7% until I retire, if all goes well the couple grand I put in could by a brand new car.

Posted: 3/31/2020 9:12:23 PM EDT

[#9]

Didn't Ford suspend its dividend also??

One go thing about owning Carival Cruise Line CCL
Is you can a $250 on board credit.

(Usefull if your cruise, and yes Carival)

.

.

Posted: 3/31/2020 11:07:32 PM EDT

[#10]

I’ve pretty much given up on dividends lately.

Whatever. Let’s ride this bitch down and hopefully I’ll be holding on when we start back up.

Posted: 4/1/2020 5:59:18 PM EDT

[#11]

I don't try to time the market, but I think the cruise lines are a LONG way from the bottom. They are going to continue to plummet. If I were buying right now, it would likely be oil...

-shooter

Posted: 4/1/2020 9:12:00 PM EDT

[#12]

Macy’s has a 30% dividend.

Probably going bankrupt this year.

Posted: 4/2/2020 8:31:31 AM EDT

[#13]

The easiest way to lose money is to chase dividends. Almost every time I've bought a stock paying over 5%, I've lost money. I wouldn't touch cruise line stocks for a few reasons.

1. You are buying into a lawsuit
2. They have no revenue now but still have expenses. Maintenance on those ships has got to be expensive.
3. They won't get bailout money since they are flagged in other countries.
4. This could go on for 2 years by then many will be bankrupt.

I looked at CCLs balance sheet and I'd be amazed if they don't go bankrupt. They have 518M on hand to pay current debt of 1.83B. I doubt borrowing will be possible now.

Cash 518M
Accounts Receivable (which are probably being refunded) 598M
Short term and current long term debt 1.83B

Posted: 4/2/2020 8:38:17 AM EDT

[#14]

I believe you have to own a minimum of 100 shares to get that OBC

Quote History

Quoted:

Didn't Ford suspend its dividend also??

One go thing about owning Carival Cruise Line CCL
Is you can a $250 on board credit.

(Usefull if your cruise, and yes Carival)

.

.

View Quote

Posted: 4/2/2020 8:48:49 AM EDT

[#15]

Carnival is offering their new stock at $8/share. They also lowered it from $1b+ to only 500m. Add that to canceling some cruises for the remainder of the year and they have some serious issues.

Posted: 4/2/2020 10:21:33 PM EDT

[#16]

It is a good thing they cancelled their dividend. It would have been irresponsible not to.

Posted: 4/6/2020 3:56:03 PM EDT

[#17]

The Saudis like Carnival cruise lines, they even bought eight percent of the company.

Saudi Arabia buys 8% of Carnival Cruise Line

Posted: 4/6/2020 4:01:43 PM EDT

[#18]

People always say things like "it isn't going anywhere." I really wonder about that these days.

Posted: 4/7/2020 10:53:50 AM EDT

[#19]

Quote History

Quoted:
People always say things like "it isn't going anywhere." I really wonder about that these days.

View Quote

Cruising will come back. It just may not be the exact same players when it does.

Think about Ford and GM back during the great recession.

GM went bust, shareholders and creditors lost everything, and now we have "New GM" which is really just a new company that inherited the GM brands.

Ford squeeked through and didn't go bust and the shareholders who held on were made whole to varying degrees.

I'd fully expect at least a few cruise lines to go totally bust. Even in the best case scenario, the ones that survive are going to be looking at severely diluting their current shareholders in order to raise capital. The idea that any of them could recover back to their previous per share values is probably pretty naive.

Posted: 4/7/2020 11:58:45 AM EDT

[#20]

Many are doing this. Delta did it a week or two ago.

Buckle up.

[ARCHIVED THREAD] - Many here said to buy Carnival Cruise...now suspending dividend.

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