You going to double down?
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I have already bought a ton more shares since my initial investment, and now invested $130,000 USD, which is 1/3 my entire porfolio.
The reason why Carnival crashed on Friday was because they did not make a profit the last quarter. But the reason they didn't was of course due to the economic climate, with high inflation and oil prices driving up costs. The higher food, wage and oil costs decreased profit margins. Becuase of this, their Q4 guidance is also relatively weak. However, their advanced bookngs for 2023 have are very strong, surpassing 2019, and the ticket prices are at higher prices, so revenue and profit should be very good. The market reaction was way out of proportion, and very suprising.
Another reason people are bearish about Carnival and the cruise lines is because they have taken on a lot debt. But no one expects the cruise lines to go bankrupt, they have enough cash to sustain them, and once they become profitable next year, they can slolwly pay their debts off.
If you are patient, and willing to hold on to these stocks for several years, you will most likely see good returns. Historially, after every major crash, Carnival has always rebounded stronger within a few years, reaching new highs. Look a the historical chart.
The pandemic and economic fear has wiped out 30 years of gains, and Carnival is selling at less than 10% of what it was just five years ago. It's insane. The unfortunate association of with Covid and cruise lines has left investors unwilling to touch cruise stocks when they can literally buy anything else.
But, as Buffet says, buy when people are scared the most. If you invest $5,000 today, ten years from now, it will most likely be worth $30,000 - $50,000. Of course, no guarantees.
Part of why I'm so confident is because I've actually taken a cruise. I loved the experience, it was amazing. The food, entertainment, amenities was such an incredible experience. As the boomers retire and people get older, more will take cruises. There is such a demand for them, as they offer a convenient and fun experience. This is not some bullshit tech company that provides no real value. It's a legitimate business that people love and offers somethint of value. The demand will never go away. And everything is about demand and supply. The big three cruise lines control virtually all the market share in the US, with Carnival being by far the largest. It's the most important player in the game.
For me, I've already bought in many times as the stock went down, so I've reached my limit. But for someone who has no shares, this would be the time to buy.
What is the market share of Carnival Cruise Lines?
Carnival Corporation controls with 45% the cruise market: cruise brands include Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn; P&O Cruises and Cunard in the United Kingdom; AIDA Cruises in Germany; Costa Cruises in Southern Europe; and P&O Cruises in Australia.
Yes, Carnival reported a bigger-than-expected loss but in this case, unlike taking a cruise, it's the destination not the journey for the cruise lines.
www.thestreet.com
I don't want people to buy this stock and blame me for losing money, do your own due diligence. But what I can tell you is that there is a huge demand for cruises, and these companies will not go bankrupt as there will always be a demand for their products. When inflation dies down, and the economy rebounds, Carnival will rebound much stronger than the market, just like it crashed much harder than the market.
It’s difficult to count Carnival (NYSE:CCL) stock out. Sure, it’s down, having fallen massively at the onset of the pandemic. But at the same time it is essentially too big to fail. That’s why I still see it as a rebound play despite the ongoing pandemic and omicron variant. Source: Kokoulina /...
finance.yahoo.com
In an era where record easy-money policies saved many companies from going bankrupt during the Covid-19 market crash, there were stocks that not only survived b
www.gurufocus.com
