Carnival Investors - CCL

Carnival Investors - CCL

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Stock Name Stock Symbol Market Stock Type
Carnival Plc CCL London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-3.80 -0.26% 1,444.00 16:35:07
Open Price Low Price High Price Close Price Previous Close
1,462.60 1,431.40 1,477.20 1,444.00 1,447.80
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owencoffin: First Published: June 28, 2021 at 12:49 p.m. ET By Lawrence C. Strauss Carnival has raised billions of dollars in capital, mostly debt, as its ships have been sidelined for more than a year. Here, a Carnival ship earlier this year. Carnival is eyeing its British-listed stock as an arbitrage opportunity on the high seas. In a securities filing Monday, Carnival (ticker: CCL) said it may offer and sell up to $500 million of its common stock, “only when the ordinary shares of Carnival plc are trading in a United Kingdom market at a discount to shares of common stock of Carnival. ” The largest U.S. cruise operator said it would use the proceeds from any stock sold to purchase its U.K.-listed shares (CCL.London). In other words, Carnival sees buybacks of its U.K. stock as a good way to create value. The U.S.-listed shares of Carnival have outperformed over the past 12 months as investors bet on a postpandemic economic recovery. Carnival’s U.S. stock was at $26 and change around midday Monday, down more than 6% on the session. The U.K.-listed stock finished Monday’s session down about 1.6%, according to FactSet. The U.K.-listed stock trades at about 11 times on the basis of enterprise value its next fiscal year’s estimated earnings before interest, taxes, depreciation and amortization, according to FactSet. That compares with about 12 times for the U.S. shares. This isn’t the first time this arbitrage idea has surfaced. In a research note earlier this year, for example, analysts at Citi Research wrote that the U.K.-listed shares were the better way to play Carnival. The U.K.-listed shares could be a way for U.S. investors to play the stock, but they would have to find a way—and incur the costs—to trade on a foreign stock exchange. A financial advisor or broker would be possible ways to do that. The news comes as the company, whose fleet has been idle in the U.S. for 15 months due to pandemic, has posted huge losses. Carnival, which recently disclosed an adjusted second-quarter loss of $2 billion, has gone through several rounds of capital raising, mostly debt. Carnival, whose corporate headquarters are in Miami, said earlier in June that its Carnival Cruise Line brand will begin operations with eight ships by the end of August. That includes sailings out of Galveston, Texas, and Miami and Port Canaveral in Florida. Other Carnival brands, including Princess Cruises, are expected to begin sailing out of the U.S. starting in September.
jcl124: The City is full of clever people spending too much time poring over charts and results statements trying to find any little inefficiency in the stock market that can give them an edge. Analysts at Peel Hunt reckon that they have found one: Carnival, the owner of P&O Cruises. The stock is dual-listed, meaning that it is traded in London and New York. To all intents and purposes, an American Carnival share and a British Carnival share are the same: “economically identical”, as Ivor Jones, a leisure analyst at the brokerage put it. There is one important difference though — the cost. For much of the past decade, the London-listed Carnival shares traded at a slight premium to their American cousins. “More recently, however, the UK shares have been trading at a material discount to the US shares and, while some of that gap has closed, they remain 14 per cent cheaper than the US shares,” Jones said. That is an “unusually large” difference and the “icing on an attractive investment case”, added Jones, as he urged clients to “buy” the stock. As the world’s biggest cruise ship operator, Carnival would appear an obvious way to play the grand reopening this summer but Jones insists that it has been “overlooked221; so far by investors. From the Times the other morning and kind of explains what people have been discussing ref the price difference between the nyse and lse pricings
thorpematt: undervaluedassets, (Word gets around) I came here to specifically to congratulate you with regard to post 3258, and to give you a thumbs up on your post. There are too many jealous people in the world and as investors we should celebrate good performance when it comes. Well done. One thing I will say is that if you put a lot of eggs in a particlar basket there will of coure tend to be a a correlation and so it is NOT beyond realms of possibility that you will see similar strong days in the future! I had already noted that yesterday was a "rotation" day: The recovery plays really kicked in yesterday (similarly the more resilient "lockdown" stocks did not do so well). on CCl I have to say that the chart has "buy here" written all over it. I dont currently hold but good luck to all of you that do.
ccnp: Well done undervalued. Will you perhaps hedge a little with the 5.75% Senior Unsecured Notes which will be '..... fully and unconditionally guaranteed on an unsecured basis, .......' If it weren't for the fact that this is offered to private 'investors', it would be funny. Right up there with the description of George W Bush having graduated in the top 75% of his class (i.e. he graduated in the lowest 1/4 of the class)
ccnp: Borrowing at 7.6% in today's market is restructuring debt and there will be a good reason for it that is only to be found in the very private Covenants agreed with the facility. One standard Covenant is a Share Price floor.. For those with open minds and anything above a modest IQ, that tells an investor a lot about the company. If you mean let them go into Chapter 11/Administration (according to registration) and buy pre-packaged with most of the debt red lined then that is somewhere between 80% and 100% certain. They are already Restructuring debt from the banks to the investment sector by bond and share issues. Banks are taking care of their balance sheets at small investor expense. Let's not forget that vast numbers of the next 12 months cruises bring in little new money. It's postponed holidays. The pressure on staff to sell drinks and excursions (that have been trimmed to the bone so more can be repeated in a port visit) will be immense. Staff morale will suffer. Enterprising punters can already get far better value from a taxi on the quay or a privately booked excursion (with the same outfit very often), although many have the desire or nouse to do so.
pierre oreilly: Bookbroker - could you tell us the companies you are invested in which aren;'t effectively bust atm? Every company in hospitality and all companies relying on it like rolls royce and ultimately every uk company are effectively bust. They will in general be kept alive by the government or, in ccl's case, the saudis who imo want a new industry, until things change, with either a vaccine or a change of stance and letting everyhthing return to normal and build immunity, like we handle every other disease, some of which are more deadlt than covid is these days. Investors look 2 years ahead. Over to you, tell us the companies you think are immune from the measures taken to handle covid?
hodhasharon: It's a brave investor who buys at these levels given the current C19 situation. Share Price vs. Fair Value 285.4% Overvalued Current Price UK£10.15 Fair Value UK£2.63 Quality Earnings: CCL is currently unprofitable. Growing Profit Margin: CCL is currently unprofitable. Earnings Trend: CCL is unprofitable, and losses have increased over the past 5 years at a rate of 2.2% per year. Accelerating Growth: Unable to compare CCL's earnings growth over the past year to its 5-year average as it is currently unprofitable Earnings vs Industry: CCL is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.1%). Debt Level: CCL's debt to equity ratio (99.9%) is considered high. Reducing Debt: CCL's debt to equity ratio has increased from 35.7% to 99.9% over the past 5 years.
pierre oreilly: Share prices generally reflect new news, not react to rehashed many months old news which was reflected in the price many months ago resulting in a price just 15% of its highs Buywell, buywell hasn't informed us that there's a covid pandemic about for at least a week. I'll save you the trouble .... Watch out, there's a pandemic about - just in case the saudis or institutions or private investors reading this or indeed ccl themselves haven't noticed.
loganair: The FTSE 100 has retreated amid concerns over a second wave of the coronavirus pandemic after Germany reported a rise in infections. Germany reported a rise in the R rate, which has jumped from 1.79 to 2.88 in just four days. Any number over one points to an increased spread of the virus and comes after 29 US states reported an increase in their seven-day average of new reported cases following lockdown easing. Fiona Cincotta, analyst at City Index, said although the number of cases in Germany was low the rise was ‘unnervingR17;. ‘Germany has been relatively successful in keeping deaths low and reducing the spread quickly in the first wave,’ she said. ‘Investors will need this second wave nipped in the bud to boost optimism that a second wave won’t be as devastating as the first.’ Travel and leisure stocks weighed on global indices and the UK’s main market was no different.
sphere25: $1billion a month - ouch! Carnival in dire straits, says AJ Bell The bargain price cruise ship operator Carnival (CCL) is raising money at shows it is in ‘dire straits’, says AJ Bell. Investors are being offered shares at $8 as part of the group’s $6.25bn rescue fundraising, a steep fall from the $51 per share they previously traded at on the New York stock exchange as recently as January. Analyst Russ Mould said the price was meant ‘to compensate for the high risks involved’ and showed the group was in ‘dire straits’, as did the scaling back of its equity raise from $1.25bn to $500m. ‘Investors brave enough to back the fundraising might think they are getting a bargain, yet Carnival is ploughing through cash at a high rate,’ said Mould. ‘The prospectus for the fundraising says it needs $1bn a month to cover operating costs, cash refunds of customer deposits, servicing debt, and some other factors. That implies it needs life to return to normal by autumn otherwise it could be asking investors for even more money.’
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