Carnival: Still Sinking


  • Carnival Corporation has just posted tough fourth quarter results, with few green shoots seen.
  • Incremental capacity gains are offset by debt servicing costs.
  • The hole is simply too big to create any realistic roadmap out here.

Carnival Liberty and Disney Dream cruise ships docked in Port Canaveral at sunset. Beautiful red-orange-blue sunset sky in the background


In November, I noted that shares of Carnival (NYSE:CCL) were still seeing tough waters, in fact stormy weather, as a large convertible bond issue announced at the time was a clear sign of financial distress.

Even as operating losses

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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