RE: Quite extraordinary sp drop on Wednesday 29th.2 Jul 2022 13:02
Moneyweek is not optimistic “Carnival’s debt-to-equity ratio was 54% at the end of February 2020. Today that figure stands at 350%. Meanwhile, interest costs have increased tenfold. In March, Carnival warned that surging energy prices would have a “material impact” on its “liquidity, financial position and results of operations” this year, which would likely push the group to a full-year loss. Carnival might return to growth, but it could also continue to struggle and report losses. The market is unlikely to re-rate the stock to a higher valuation if the firm continues to bleed red ink. In other words, there are better buys in the travel and tourism sector. “