Carnival Corporation is a leisure travel company. The CCL company is a cruise company of global cruise guests and a provider of vacations to all cruise destinations throughout the world. The Company’s segment is including North America and Australia (NAA) and Europe and Asia (EAA). The Company’s North America and Australia segments are including Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia) and Seabourn. The Company’s EAA segment includes Costa Cruises (Costa), AIDA Cruises (AIDA), P&O Cruises (United Kingdom), and Cunard. The Company’s geographic areas include the United States, Canada, Continental Europe, Asia, Australia, New Zealand, and the United Kingdom. The CCL at https://www.webull.com/quote/nyse-ccl company’s ships sail to all cruise destinations are including Alaska, Antarctica and Patagonia, Arabia, Africa and India, Australia and South Pacific, Canada and New England.
The Bottom Fishers Loading Up
- Bottom fishers are having rounded the wagons on cruise ship stocks and are scooping up shares at a rapid pace, speculating that the industry will be bounced back later this year and into 2021.
- Healthy bookings have underpinned this buying pressure, suggesting that Americans will be returned to their old travel habits as soon as possible. If true, positions taken at these depressed levels could pay off handsomely in the coming quarters.
- However, there are no guarantees that these companies will be survived because secondary these are offering and/or new loans. That is struggling to match high cash burn rates, raising the threat of bankruptcies in the fourth quarter and beyond.
- Cruise ship operators are currently targeting the second half of the third quarter for the resumption of operations. But that is equally dangerous because it will be taking just a single outbreak and quarantine to trigger a fresh wave of cancellations.
- None of these companies are having the cash needed to survive into spring 2021 without at least limited revenues. It is raising doubts about the wisdom of buying these stocks are right now.
- Sector accumulation readings are having also shot higher since March, with several components that are returning to pre-crisis levels. But secondary offerings are one of the responsible for part of the uptick, with new shares filling portfolios.
- This dilutionwill be undermined potential gains in the coming quarters because of the higher float and outstanding shares.
- Each share is worth less than it was at the same price just a few months ago, it is making harder for upticks to mount contested levels.
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