RE: CCL make their move9 Mar 2020 07:50
We also received email a couple of days ago and, with our friend having a lung condition and my wife will be a few weeks post-op by May, we have decided to take the cancellation for our British Isles cruise and re-book later in the year, hopefully for a huge discount.
We all talked about buying the minimum 100 shares recently and our friends bought at around £25 per share. I'm inclined to think that this has a way to go yet, with cancelled bookings, especially the Americans and Italians, plus the incertainties of what will happen when you are on the cruise.
The fear of circling the oceans and not being allowed into ports, or worse still being held on the ship for weeks will put off a lot of cruisers. Particularly worrying is the latest ship outbreak where the outbreak is basically among the crew. Seems to me that Princess feel it is cheaper to offer cancellation rather than risk ships becoming quarantine hotels.
I fear this SP could fall as low as £10 per share if the contagion is bad and even at that price, you would have to be prepared to hold for a long time as share price would recover slowly and Carnival would probably cancel the next dividend. Worse case scenario could also include a cash call to strengthen the balance sheet as the banks did a decade ago.
Sorry to sound doom laden. I am positive but not in the short term