Get 'em ready ... cruise lines will go on sale again, already trickling downward.
IMO, they are a fantastic opportunity once they move down another chunk or two.
While cruises aren't for everyone, they're very popular worldwide and will grow.
Get 'em ready ... cruise lines will go on sale again, already trickling downward.
IMO, they are a fantastic opportunity once they move down another chunk or two.
While cruises aren't for everyone, they're very popular worldwide and will grow.
Just now ...
Might be good for a trade but long term they took on a bunch of debt to stay afloat during COVID. So even if they get back to pre Covid levels they have that debt that they didn't have before the virus hit. Next year is going to be interesting for sure.
For me (which means little) anything the CDC touches I am not even contemplating. This is not banking where we knew places like BOA was going to recovery for a worthy investment.
As much as the quality of their cruises is lacking, the best financials are Carnival.Originally Posted by NitroZ7
I'm not a bit afraid of investing in the Big Three. Cruising is popular worldwide.
Transportation, meals, accommodations, entertainment & gambling ... one spot.
100 years ago, we had a bump in the road too. We're doing just fine in recovery.
The debt is an albatross across their neck. They are making a similar revenue to what they are making in 2019 with more debt. How does that work out for them?
I'm in Florida mostly and co-located in another cruise spot ... they ain't going anywhere.
If the cruise industry raised prices 20%, they'd still be rocking & generating big revenue.
Where else you gonna go? All-inclusive resorts are way more expensive and don't move.
People will vacation, even if they have to make payments, Disney World proves it daily.
And since when the debt or EPS slow things? Isn't stock price nearly irrelevant ... Tesla.
People laughed when we bought AAPL in its "death days" and BAC when it was a tramp.
I'll take cruises over utilities, the latter is regulated. And they beat airlines hands down.
Unless I'm wanting to bury all my cash in RE, commodities and bonds ... stocks are it.
I like stocks just not all of them. Lam Research, Apple, Waste Management yes, cruise lines not so much. I think there are better companies to own with higher margins in the long term. The cruise stocks might be a good trade though if they fall low enough. Of course this is what makes a market.
That's my point ... RCL as an example. $32 when it bottomed, $77 now after a ding. Hits $50, buy.
Same for NCL, CCL & possibly some of the supporting businesses - food and liquor distributors, etc.
Apple dropped to $230 when the crap hit the fan. After splitting 4X it's currently $177. That's 300%.
Certainly a lot of optimism for the cruise industry to succeed, it looks to be a long term play for sure:
https://gcaptain.com/carnival-sells-...ion-junk-bond/
I agree that the cruise lines will not go away, it's a question of when you can realize profits from your investments.
Good luck!
It's not what you can take with you,
It's what you leave behind.
I sold when I doubled on carnival. I may try that again, even though I canceled the cruise I had booked departing in a week. Canceling had Less to do with covid than other things I had going on.
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A guy I worked with went a few weeks ago and said the boat was about half capacity. He said it was great. They had their own table for dinner and the service was great. I would go now if I was able to get away from work.
Looking at a yearly chart this morning, CCL stock is right where it was, more or less, in January of 2021. It would appear, in the last year, anytime the price gets near or breaks $18 on the down side it gets bought up. I made money off the stock after the onset of the pandemic, sold it when I doubled....might be time to ride again. Side note, the wife and I have been on 9 cruises and will go again as soon as we deem it safe to do so. They do have massive debt, but any good news on the cruise industry will get the momentum rolling IMHO. Give me 10% and I will be a happy trader.
What we cannot obtain from intelligence, we can learn from experience.
Keep your powder dry, but load 'em up.
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