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NYSE:CCL

Carnival Corp. (CCL)

30.89
+0.02 (0.06%)
as of Jun 18, 2026, 11:55:28 pm Market Open.
120 watching
0
COMMENT

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.

COMMENT

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.

COMMENT

This is something that he is looking at. Because of high fixed costs, cruise ships are extremely cyclical and totally tied to the global economy. Economic bad news is horrible for these companies, but it is a stock that intrigues him.

DON'T BUY

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.

DON'T BUY
Not handling the PR very well. Even before the accident, the stock had been moving down and earnings had been looking at little bit murky. It's in the discretionary space so could do well going forward for the time being it is below both the 200 day and 50 day averages. $30 might be its support level.
WAIT
Contrarian and Value. He looked at it but decided maybe, but let things settle out. You have seen most of the damage in the stock. There are regulars and they are not affected. The one third that aren’t regulars are the ones who you will lose. The question is whether you lose them for one year or three years.
COMMENT
Had a severe drop today because of the sinking of their ship. He also doesn't know their financials. People are going to keep on cruising but there will be a lot of people with a knee-jerk reaction.
DON'T BUY
Cruise lines. Hasn't looked at this closely in the last few months. Fuel is a large component of their operating costs. A consumer discretionary type name so Cruise line stocks have not done that well in general. Consumer spending will be muted.
PAST TOP PICK
(A Top Pick Aug 27/08. Down 14.22%.) Has had a very nice run lately.
PAST TOP PICK
(A Top Pick Aug 27/08. Down 35.7%.) With consumer pressures and oil going back up they have under performed. Very cheap stock and he is still recommending it.
COMMENT
When the economy improves it should be helpful to this company. In the meantime it has problems the same as any other retail. He is watching this one.
TOP PICK
Cruise lines. The cost to buying a new cruise ship is in enormous. Demographics of the cruise business are great. Number of people taking cruises is going up every year. Think they can beat earnings estimates over the long term. Trading at about 12X forward earnings. Yield of 4.4%.
TOP PICK
Not buying for the 4% dividend yield but for the long-term growth prospects for the industry as people globally take more cruises. On every additional passenger, the fare goes right to the bottom line.
DON'T BUY
Their last quarter was a little short it could easily be trading in the $40. It's a bit overpriced.
BUY
A great stock to own. For 10 years was in a band of between $12/17. A couple of months ago it reported fabulous earnings, talked about a turn around in its label business continuing, its aluminum container business started to turn around, so now the company is starting to fire on all cylinders. Earnings will continue to go up. Good valuation.
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