Carnival: Turning The Boat Around


  • The Miami-based cruise operator reported its fourth quarter earnings results on the 21st of December, burning through much less cash than analysts initially expected.
  • Mr. Market reacted largely positively to the news, as it appears set to push the stock beyond the $10 level once more if the upward price movement continues.
  • Carnival is still being chewed up in the markets, losing 60.3% of its value year-to-date as it currently trades at an 83.4% discount to the pre-2020 price.
  • We still remain somewhat unconvinced as to the successful recovery of CCL, opting in to wait for a clearer plan on deleveraging and a “show of force” in terms.
  • It’s more likely that things will get significantly worse before they get any better for CCL shareholders, as turning the boat around proves to be a much more difficult task.
Carnival Splendor cruise ship was at anchor in Cabo San Lucas, tendering it"s passengers to the island


Without any fault of its own and as a result of factors the company had no control over, the basics of an otherwise excellent company that I had admired were all but obliterated. Former pre-pandemic shareholders and those willing to speculate that

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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