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NYSE:CCL
Royal Caribbean Cruises (RCL-N) or Carnival Corp (CCL-N)? Royal Caribbean has outperformed Carnival in the last 12 months. It is up about 50%, where this one is up about 30%. On a valuation perspective, this trades at over 1.1 PEG ratio compared to Royal Caribbean at .85. It is also cheaper. Both should do well.
Has had a lot of problems. Theoretically the cruise ship business is a great way to take a fairly inexpensive holiday. There is probably some pretty good protection from an asset point of view. The trouble is, the brand has taken a huge, huge beating. This is a high risk trade. He looked at it and decided against it.
Have had lots of difficulties with the cruise line that got in accidents but have recovered brilliantly from that. Revenues have recovered. Bottom line took a big hit but it is doing reasonably well now. Insiders have been selling quite a bit. Do about $15 billion of revenues but debt load is about $9 billion. That is a pretty heavy debt load and he doesn’t like that.