|Bid||16.00 x 900|
|Ask||15.99 x 1800|
|Day's range||15.80 - 17.17|
|52-week range||7.80 - 51.94|
|Beta (5Y monthly)||1.96|
|PE ratio (TTM)||5.83|
|Earnings date||25 Sep 2019 - 30 Sep 2019|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||20 Feb 2020|
|1y target est||16.39|
The Carnival share price had a far bigger fall than the FTSE 100 index over the month. Is the price low enough to make it attractive now?The post The Carnival share price has plunged! Here’s what I’m doing now appeared first on The Motley Fool UK.
Costa announces a further pause for all its cruises until August 15th, 2020 and the cancellation of all cruises in Northern Europe for the remainder of the 2020 summer season. The decision is linked to the uncertainty on the gradual reopening of ports to cruise ships and the restrictions that may still be in place for the movements of people due to the COVID-19 global pandemic. In addition, the Company is also communicating the cancellation of all future cruises of Costa Victoria.
Carnival's (NYSE: CCL) low stock price and strong brand make it look like a solid way for investors to bet on a rebound in the tourism industry. Previously, I argued that a rapid restart in cruise operations could bring the company back in the third quarter. The spike in new COVID-19 cases is drastically worsening Carnival's risk-to-reward proposition.
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has scheduled a conference call with analysts for Friday, July 10, 2020 at 10 a.m. (EDT); 3 p.m. (BST) to provide a business update.
Schnitzer Steel, Carnival, Boeing, Facebook and Micron highlighted as Zacks Bull and Bear of the Day
Investors need to pay close attention to Carnival (CCL) stock based on the movements in the options market lately.
Shares in Carnival (NYQ:CCL) are currently trading at 16.78 but a key question for investors is how the economic uncertainty caused by Coronavirus will affect...
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) (the "Company") one of the world's largest leisure travel companies, today announced the pricing of Carnival Corporation's first-priority senior secured term loan facility, consisting of a $1,860 million tranche and a €800 million tranche, with a maturity of five years. The U.S. dollar tranche will be issued at a price equal to 96% of its face value and will bear interest at a rate per annum equal to adjusted LIBOR (with a 1% floor) plus 7.500%. The euro tranche will be issued at a price equal to 96% of its face value and will bear interest at a rate per annum equal to EURIBOR (with a 0% floor) plus 7.500%. Both tranches of the term loan facility will be prepayable, in whole or in part, at the Company's option at a price equal to the face value plus a customary make-whole amount for the first year after closing, 102% of the face value for the second year after closing and par thereafter. The obligations under the term loan facility will be guaranteed by Carnival plc and the same subsidiaries that currently guarantee, and will be secured on a first-priority basis by the same collateral that currently secures, Carnival Corporation's 11.500% first-priority senior secured notes due 2023.
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Carnival Corporation & Plc (NYSE: CCL, CUK) between September 26, 2019 and April 30, 2020, inclusive (the "Class Period") of the important July 27, 2020 deadline in the securities class action. The lawsuit seeks to recover damages for Carnival investors under the federal securities laws.
(Bloomberg Opinion) -- While Americans still have not adopted mask-wearing as a general norm, we’re wearing masks more than ever before. Mask-wearing is mandated in California, and in many counties masks are near-universal in public spaces. So I have started wondering: Does wearing a mask change our social behavior and our emotional inclinations? And if mask-wearing does indeed change the fabric of our interactions, is that one reason why the masks are not more popular in the U.S.?When no one can see our countenances, we may behave differently. One study found that children wearing Halloween masks were more likely to break the rules and take more candy. The anonymity conferred by masks may be making it easier for protestors to knock down so many statues.And indeed, people have long used masks to achieve a kind of plausible deniability. At Carnival festivities around the world people wear masks, and this seems to encourage greater revelry, drunkenness, and lewd behavior, traits also associated with masked balls. The mask creates another persona. You can act a little more outrageously, knowing that your town or village, a few days later, will regard that as “a different you.”If we look to popular culture, mask-wearing is again associated with a kind of transgression. Batman, Robin and the Lone Ranger wear masks, not just to keep their true identities a secret, but to enable their “ordinary selves” to step into these larger-than-life roles.But if we examine mask-wearing in the context of Covid-19, a different picture emerges. The mask is now a symbol of a particular kind of conformity, and a ritual of collective responsibility and discipline against the virus. The masks themselves might encourage this norm adherence by boosting the sense of group membership among the wearers.The public health benefits of mask-wearing far exceed the social costs, but still if we want mask-wearing to be a stable norm we may need to protect against or at least recognize some of its secondary consequences, including the disorientations that masks can produce. Because mask-wearing norms seem weakest in many of the most open societies, such as the United States and United Kingdom, perhaps it is time to come to terms how masks rewrite how we react and respond to each other.If nothing else, our smiles cannot be seen under our masks, and that makes social interactions feel more hostile and alienating, and it may lower immediate levels of trust in casual interactions. There are plenty of negative, hostile claims about masks circulating, to the point of seeming crazy, but rather than just mocking them perhaps we need to recognize what has long been called “the paranoid style in American politics.” If we admit that mask-wearing has a psychologically strange side, we might do better than simply to lecture the miscreants about their failings.Just ask yourself a simple question: If someone tells you there is a new movie or TV show out, and everyone in the drama is wearing masks, do you tend to think that’s a feel-good romantic comedy, or a scary movie? In essence, we are asking Americans to live in that scenario, but not quite giving them the psychological armor to do so successfully.On the brighter side, I wonder if mask-wearing might diminish some expressions of intolerance. People who might feel that others are “looking at them funny” might find themselves with less to be offended by as masks obscure those micro-reactions. Common mask-wearing is already reportedly easing the public judgment experienced by Muslim women who wear face coverings in Western society; some Muslim women who wear the niqab report that they are no longer being given dirty looks, if only because they no longer stick out so much.Women who cover their faces for religious reasons may now be ahead of the rest of us when it comes to effective communication — because they cannot rely as much their faces to convey emotion in public conversations, they report relying on more visible body language like waving and gesturing.The tension of current mask policy is that it reflects a desire for a more obedient, ordered society, for public health purposes above all, but at the same time it creates incentives and inclinations for non-conformity. That is true at least within the context of American culture, admittedly an outlier, both for its paranoia and for its infatuation with popular culture. As a society, our public mask-wearing is thus at war with its own emotional leanings, because it is packaging together a message based on both discipline and deviance.What can we do to convince people that a mask-laden society, while it will feel weird and indeed be weird, can be made stable and beneficial through our own self-awareness? While there is no simple answer to that question, mask advocates should recognize that they have been treading into unusual cultural territory, and should not be surprised by unusual public responses.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tyler Cowen is a Bloomberg Opinion columnist. He is a professor of economics at George Mason University and writes for the blog Marginal Revolution. His books include "Big Business: A Love Letter to an American Anti-Hero."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Quality and value are two of the most important drivers of stock market returns - yet many investors fail to take them seriously. At a time of deep economic un...
(Bloomberg Opinion) -- It’s hard to think of a less sympathetic group during the coronavirus pandemic than hedge funds and other firms that buy distressed assets and companies. They’re colloquially referred to as “predators” or “vultures” for a reason, after all. These investors step in when the outlook appears bleakest — and they have all the power — to lock in potentially huge returns in exchange for a cash infusion.Still, one recurring theme of the current economic crisis is how the quick rebound in many financial markets has confounded distressed investors and left them looking flat-footed. I wrote in late March that the firms scrambling to launch credit funds might be too late by the time they finished raising money. Indeed, by mid-April, the average yield spread on junk-rated corporate bonds had fallen to 700 basis points from 1,100 basis points on March 23. A 1,000-basis-point spread is typically the benchmark for “distress.” In the span of weeks, the projected future return from buying risky credit was slashed drastically.That spread has since contracted further, to 575 basis points. A Bloomberg News headline this week declared “Fear Is All But Dead in Credit Markets” because of the Federal Reserve, noting that June is likely to be a record-setting month for speculative-grade corporate debt sales. Roughly 621 bonds from 324 issuers are trading at distressed levels, down from 1,896 issues from 892 companies three months ago. Even leveraged-loan prices have recovered to 91 cents on the dollar from as low as 76 cents in March. It was always possible this could be a painful but quick recession, inflicted intentionally in the interest of public health. But few thought it would be this short-lived.The Economic Policy Institute’s Josh Bivens wrote in a blog post this month that the Fed’s actions during this crisis came “mostly at the expense of financial predators,” citing Carnival Corp.’s huge bond sale earlier this year as an example:Hedge funder predators were looking to exploit a nonfinancial corporation that needed loans as it faced distress caused by a global pandemic and economic crisis, and the Fed intervened and offered the nonfinancial corporation a better deal. From my perspective, there are no presumptive good guys in distributive conflicts between nonfinancial capital and financial predators. But it’s not obvious to me why we should shove more firms like Carnival closer to bankruptcy — and threaten to extinguish even more jobs than have already been destroyed — just to allow hedge fund vultures to reap the benefits of having their predatory loans be Carnival’s only option.That’s a good argument against “liquidationists.” Sure, public pensions are among the biggest investors in hedge funds and distressed-debt strategies, so suppressing returns only makes it that much harder for states and cities to meet their obligations to retirees. But is a higher funded level worth inflicting punitive borrowing costs upon airlines, cruise-ship operators and hotels? To say nothing about the future job market in those industries? Probably not.For distressed investors, then, the solution is to find the markets that have been left to fend for themselves.Certainly, some are skeptical that the Fed can fend off corporate insolvencies forever. Philip Brendel, a senior credit analyst at Bloomberg Intelligence, compares the sharp rebound in recent months to a similar bounce in early 2008, which obviously didn’t last. There have been several high-profile corporate bankruptcies thus far, and 13 U.S. companies sought court protection last week, the most since May 2009. GNC Holdings Inc. became the latest casualty this week.Still, the most intriguing area might just be commercial real estate, or CRE. This is clear by looking at the infamous CMBX 6, a synthetic index tied to commercial mortgage backed securities that has been used for years by investors — and, more recently, by billionaire Carl Icahn — to bet on the future of shopping malls and other retailers. It lurched lower in early March, staged a comeback toward the end of that month with other risky assets, then tumbled to a new low in May before surging again in the three weeks through June 8.Here’s what the chart looks like. As far as recoveries go, it’s not quite a U, a V, or even a W:It goes without saying that for Icahn, who reportedly amassed a big short position on the CMBX 6 index in the final months of 2019, the trade has been a spectacular success; it has been quite the opposite for mutual funds on the other side. A trio of real-estate experts said last week that CRE is entering a “classic distress cycle,” with retail seen as the most risky, followed by offices. Earlier this month, S&P Global Ratings put 96 classes from 30 U.S. conduit CMBS deals on CreditWatch Negative, “mainly due to their higher exposure to loans secured by lodging or retail properties,” which raises the risk the speculative-grade classes “could experience monthly payment disruption or reduced liquidity.”This appears to be fertile ground for opportunistic investors with cash on hand who have a view on commercial real estate in a post-coronavirus world. Some firms seem to be trying to snuff out those perspectives. Earlier this month, Bloomberg News’s Gillian Tan reported that Shelter Growth Capital Partners LLC was exploring the sale of a U.S. CRE loan portfolio with a face value of $711 million split into four pools: performing senior loans, construction loans, performing mezzanine loans and hospitality loans. “The potential transaction is being explored in part to test the appetite of institutional investors such as real estate credit funds,” according to a person familiar with the talks.While anticipating the future value of malls, office buildings and hotels can seem to some like staring into the abyss, that’s precisely when sophisticated investors are supposed to shine. Consider that retail and tech data firm Coresight Research estimates that as many as 25,000 U.S. stores could close permanently this year, mostly in malls. That seems like a staggeringly high number and explains the crash in CMBX 6, but there’s a price at which about any investment starts to make sense. The fluctuations in the index at least suggest this remains a two-way market, unlike other assets perceived to be in the Fed’s control. It will be telling, for instance, if billionaire Sam Zell, who invests in troubled real estate, has changed his tune since early May, when he was content to sit on the sidelines. That was right around the time CMBX 6 reached its low. If Zell’s call about America’s reopening is correct — “the fact that these places may be open doesn’t necessarily mean that they’ll be doing business” — then assets tied to CRE might be in for another decline. So far in New York, only a trickle of finance workers are going back to the office, backing up a vision from Morgan Stanley Chief Executive Officer James Gorman in April that the bank will need “much less real estate.” It might take some time for deeper problems to emerge.Since lockdowns began, I’ve held the view that most predictions about the world after Covid-19 will probably turn out to be exaggerated. Commercial real estate is a tough call. Certainly, I’d think that any retailer or restaurant without an online strategy before March has one now, which could mean less focus on the brick-and-mortar space. And without question, businesses have developed more comprehensive work-from-home capabilities, which might mean less demand for office space in a handful of large cities.The trend is in a decidedly downward direction; the question is whether the price is right. If commercial real estate is one of the only distressed opportunities available, however, investors can’t afford to be too picky.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Carnival Corp. is the latest cruise line to lose its investment-grade credit ratings after S&P Global Ratings downgraded the company Tuesday.S&P slashed the company’s long-term rating by three levels to BB-, from BBB-, saying the cruise line’s credit metrics are likely “to remain very weak through at least 2021” as it begins to slowly resume its operations. The cut from S&P hands the company a second high-yield credit rating, meaning its debt will leave investment-grade credit indexes.Moody’s Investors Service cut the company to junk in May. In a statement Tuesday, it downgraded Carnival’s unsecured credit ratings by one notch to Ba2, the second-highest junk rank. It also rated Carnival’s planned term loan Baa3, the lowest investment-grade rating. S&P graded the new loan BB+, or one step lower.Carnival’s recovery will be much slower in 2021 due to the fact the cruise line plans to return to normal operations in phases, S&P said. Additionally, the credit rater also expects it will take several months for Carnival to return all its ships to service as the virus deters previous demand.“There remains a high level of uncertainty around when and how the company will resume its service and its ultimate recovery path,” analysts Ariel Silverberg and Melissa Long wrote in a report Tuesday.On Friday, industry group Cruise Lines International Association said it would further suspend voyages from U.S. ports until Sept. 15, meaning the world’s biggest cruise lines will now be going at least six months without American customers.Last month, Carnival had teased a return to the seas as soon as Aug. 1. But in the past several weeks, many parts of the U.S. have seen an uptick in Covid-19 cases, including Florida, home to the world’s largest cruise port. Carnival Cruise Line, Carnival’s namesake brand, recently said its North American operations will remain paused through Sept. 30.Miami-based Carnival is now marketing around $1.5 billion of loans in European and U.S. credit markets as it seeks to shore up its liquidity while the coronavirus pandemic halts cruises. The latest round of financing follows a $4 billion bond sale in April.The company had about $9.7 billion of long-term debt as of Feb. 29, according to a regulatory filing.Carnival’s shares dropped about 2% after the close of regular trading in New York.(Updates with S&P comment, additional details from fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Carnival's share price sits well below its recent highs but is stock in the cruise line operator a bargain for the long-term investor?The post Is the Carnival share price a bargain? appeared first on The Motley Fool UK.
Carnival (CCL) extends the suspension of its operations of cruises in North America through Sep 30, 2020.
(Bloomberg Opinion) -- It’s growing more likely by the day that we’ve reached peak “bored retail trader” in the financial markets.Bloomberg News, The Wall Street Journal and seemingly every financial news publication has now profiled Dave Portnoy, founder of the website Barstool Sports, who has turned to day-trading stocks with sports on hold because of the coronavirus pandemic. Robinhood Financial’s trading app is all the rage, being credited with the shocking rally in shares of bankrupt Hertz Global Holdings Inc. that almost prompted an unthinkable offering of potentially worthless stock. My Bloomberg Opinion colleague Matt Levine has called this entire phenomenon the “boredom markets hypothesis.” If this trend is close to running its course, more traditional investors might want to consider what happens when the music stops and Portnoy’s No. 1 rule — “stocks only go up” — doesn’t work so flawlessly. The S&P 500 Index’s sharp rally from its March lows is already starting to fizzle, with the index down more than 3% during the past two weeks. While hardly backbreaking, it’s the largest loss over such a sustained period since the worst of the selloff three months ago. Even sideways trading for the summer would violate the day trader’s mantra.Fortunately for sophisticated investors who might side with Warren Buffett and Leon Cooperman over the Robinhood crowd, there’s an intriguing asset class for this crossroads: convertible bonds.The securities, which can be swapped for shares at specified prices, have already been having something of a moment. The Bloomberg Barclays U.S. Convertibles Composite Total Return index jumped to a record on June 8 and remains close to that lofty level. Convertible bonds have gained 7.8% so far in 2020, better than the 5% return on investment-grade corporate bonds and the roughly 3% loss for the S&P 500. I’ve written before about how it seems as if there’s something inherently “cheap” about convertibles that boosts returns above and beyond a mix of stocks and bonds. Part of it might be the types of companies that offer such securities. Within the Bloomberg Barclays index, some of the biggest names include Tesla Inc., Carnival Corp., Southwest Airlines Co., Microchip Technology Inc. and Workday Inc. In other words, a combination of technology companies that have powered the U.S. stock market rally and brand-name businesses particularly harmed by the coronavirus but part of the “recovery trade” strategy. American Airlines Group Inc. is in the market selling convertible notes, too.Some of these individual companies are favorites of the new day-trading crowd. But for those who want to bet on convertible bonds, and specifically to keep trading relatively small sums with zero commission, the $4 trillion exchange-traded fund market is probably their best bet. Yet even the asset class’s sharp rally hasn’t been enough to lure individuals from the thrill of wagering on the trendy stock pick of the day. Consider the $717 million iShares Convertible Bond exchange-traded fund (ticker ICVT), which has soared since March and is up more than 6% this month alone. A few weeks ago, it looked as if it might have been discovered — on June 3, its assets increased by 21% as investors poured a net $108.3 million into the fund, the most since its inception roughly five years ago, according to data compiled by Bloomberg. It gained an additional $69 million on June 9, good for the second-biggest inflow ever. On the flip side, State Street’s $4.47 billion SPDR Bloomberg Barclays Convertible Securities ETF (ticker CWB) suffered an outflow of $107.6 million on June 10, the largest daily withdrawal on record, followed by a $75 million exodus on June 11. That’s a stark contrast to the tens of billions of dollars flowing into credit ETFs.That seeming lack of interest is just fine for investors like Eli Pars, co-chief investment officer and head of alternative strategies at Calamos Advisors. The Naperville, Illinois-based firm is the largest public holder of convertible bonds issued in April by Carnival and Southwest Airlines, according to data compiled by Bloomberg.“It’s a great way to play the stock market in a less volatile way,” he said in a phone interview. While this is the common elevator pitch for investing in convertibles, the securities backed up that claim during March’s turbulence by tumbling less than benchmark equity indexes. That’s because investors can always fall back on interest payments if equity prices fall while capitalizing on a rally because the value of the option to convert to shares increases as well.Pars says convertibles are compelling for those with significant equity holdings who want to dial back their risk a bit after the sharp rebound in the past three months, or for those who sat out the entire rally and want some protection from a reversal. It’s a safer bet than simply taking short positions on the S&P 500; Bloomberg News’s Cameron Crise calculated that speculators have ratcheted up their bets against the index to the most extreme level since 2011.In some ways, the new band of Robinhood traders plays right into the hands of investors like Pars. He manages the $9 billion Calamos Market Neutral Income Fund, which partly employs a strategy known as convertible arbitrage. The trade involves buying and holding the convertible bond while hedging with a short position in the common stock, in theory generating a nearly riskless profit from price discrepancies between the two assets. That’s more likely to happen when there’s added volatility — and especially when the fluctuations seemingly come out of nowhere. “It’s one thing when you have volatility driven by real fundamentals,” Pars says. “When you have more noise volatility, that’s perfect for an arb.”With so much uncertainty surrounding how quickly states can emerge from lockdowns, and just how quickly Americans will travel the way they used to, even modest downside protection, like the 1.25% interest rate on Southwest Airlines’s convertible securities, can be a comfort for investors. That could wind up being a better yield than similar maturity Treasuries over the next five years, given that it’s anyone’s guess whether the Federal Reserve will have raised short-term interest rates from near-zero by then.These are the prudent — albeit less entertaining — calculations that professional investors are paid to think about. There’s still a large divide between the newbie traders who fly in and out of stock and ETF positions on a whim thanks to no-fee trading, and Wall Street denizens who scrutinize market segments mostly out of reach of Robinhood. The former are best thought of like shares of Hertz, surging 682% in the span of days but now sputtering toward zero again.Convertible bonds, by contrast, have delivered average annual returns of 9% or higher over three-, five-, 10- and 15-year horizons. It stands to reason they’ll keep doing so long after the legions of bored traders find a new hobby.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The cruise line, owned by Carnival Corp, had previously said it would resume some voyages on Aug. 1. Industry trade group Cruise Lines International Association (CLIA) said on Friday its ocean-going cruise line members, which include Carnival, Royal Caribbean Cruises Ltd, and Norwegian Cruise Line Holdings Ltd, would voluntarily extend their pause in operations from U.S. ports until Sept. 15.
Carnival Cruise Line today advised guests and travel agents that it has extended its operational pause in North America through Sept. 30, 2020.
As we start the second half of 2020, let's look at whether travel shares, including Carnival and International Consolidated Airlines, may belong in long-term portfolios.The post Are FTSE travel shares like Carnival or International Consolidated Airlines Group cheap enough to buy now? appeared first on The Motley Fool UK.
One thing we could say about the analysts on Carnival Corporation & Plc (NYSE:CCL) - they aren't optimistic, having...