Carnival Share Discussion Threads

[robertball] 07/7/2021 08:30

Being heavily shorted

[twinny2003] 07/7/2021 08:18

WOW when are we going to see it start to rise

[owencoffin] 28/6/2021 18:47

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.

[smurfy2001] 28/6/2021 13:17

Which ones and link to thread?

[rinato5] 28/6/2021 11:43

There are voices "Gamestop's team" are talking about UK shares, but DYOR.

[robertball] 25/6/2021 08:13

Agree. Avoid for the moment. Get back in oncePrice crosses £17.50 odd

[twinny2003] 24/6/2021 15:13

This is not good

[justiceforthemany] 21/6/2021 15:57

PM says ‘looking good’ for lifting restrictions in England on 19 July - Guardian

[ammu12] 14/6/2021 18:16

The London hedge fund took out the largest short position made in the City last week with a 141.6 million-pound ($199.7 million) bet against cruise operator Carnival Corp., based on a Financial News analysis of documents filed with the Financial Conduct Authority.

[robertball] 09/6/2021 09:04

Relevance?

[oneilly] 09/6/2021 07:58

Well, you have a point!

[ccnp] 09/6/2021 07:11

Scotland the sensible


How lucky the Caribbean islanders must feel about the cruise restart. All those lovely double jabbed coming to visit them when many haven’t even had one jab. It’s our right to take sickness overseas and bestow the gift of COVID on others isn’t it

[robertball] 08/6/2021 19:57

CCL price holding up in US

[panshanger1] 08/6/2021 16:54

Celebrity e mailed me yesterday to say there first post pandemic cruise had left port in Caribbean

[robertball] 08/6/2021 12:37

Sorry. These are desperate rantings

[robertball] 08/6/2021 10:20

Cruises might be a winner here. Cost advantage over hotels struggling to recruit staff etc etc and they can flaunt their COVID free status.

[justiceforthemany] 07/6/2021 20:12

US Cruises resume on 4th July
Norwegian Cruise and Carnival Cruise plan to resume sailings from US ports this summer, marking the return of cruise ships to the industry’s most profitable market for the first time since the pandemic began.

Norwegian said on Monday that it will sail from New York, Los Angeles, Port Canaveral and Miami. Carnival Cruise intends to resume voyages from Port of Galveston, Texas in early July and that it planned to do so out of Miami in the same month.

[arja] 07/6/2021 06:46

robertball,
no worries sport and good luck with it . chart still in a nice short term uptrend but consolidating and needs to break that 1850 level and then more in it I think .

[justiceforthemany] 06/6/2021 14:00

0.5% yes just half a percent of UK hospital beds occupied by Covid patients yet mass hysteria and over reaction again.

Portugal incidence rate at 50 cases per million is below the UK's (66) yet is moved to amber. Crazy.

[robertball] 04/6/2021 19:26

My mistake. There is a bit of a discount. TBF: I've only had CCL for a couple of weeks and just riding the trend. Sorry

[helpaargh] 04/6/2021 14:36

At 8.53 travel agent confirms cruise demand