Member Info for Longtermview24

For now. That still looks expensive to me. I notice that the fundraise has still not concluded - date is 6 April. I expect this will drift down to placing price next week after new shares issued.

You're forgetting to account for the shares that will be issued at $10 for the $2billion of convertibles, that's another 200M shares

Latino - your post yesterday at 17.41

Will be lucky to get in under £8.50 as this will open up!

Fool confirmed.

Looks like about 40% dilution assuming all the convertible bonds are converted. That severely limits the upside recovery in the share price. Even if this returns to previous high market cap, sp is effectively halved.

Hard to take you seriously Latino . 880p was a great entry point according to you yesterday. better to be quiet and taken for a fool than opening your mouth and confirming you're a fool.

I'm very surprised they didn't get it away higher than that, so they borrowed more to offset dilution. In the current market 11.5% interest is eye watering and just shows the level of risk there is that the company goes belly up.

It'll take a long time to recover from this, if they do at all. At the moment this is a punt. It'll be months before any informed decision can be made on the future of Carnival - and indeed whether they have a future at all.

As well as ongoing overhead, they now have a very hefty interest payment to make every six months.

Sobering how one event can decimate a company - and industry - that was booming

looks like we might hit that tomorrow on the way down to 250p

finished down 33% at $8.80 in US

Shares of Carnival Corp. plunged 23% on heavy volume Wednesday, as cruise operator followed up its worst-ever quarterly performance with its biggest one-day drop in two weeks. Trading volume swelled to 84.9 million shares, already nearly double the full-day average of 42.8 million shares. On Wednesday, Carnival said it launched a $1.25 billion public offering of stock, and offerings of a total of $4.75 billion worth of notes. Carnival's stock had plummeted 74.1% in the first quarter, much worse than the previous record quarterly decline of 48.1% over the first quarter of 2000.

Latino earlier today -
Will be lucky to get in under £8.50 as this will open up!

Genius.

Closed 770p.

PMSL

https://dnyuz.com/2020/04/01/carnival-increases-size-of-rescue-bond-sale-to-4bn/

bondholders are well secure with first call on all co assets including entire fleet.

shareholders unsecured.

at least the dilution might not be as great if they raise more bond money they may issue less equity

when was the website last updated, websites can be notoriously miseading

fifty quid anchor

it was 620p before there was a 40-50% dilution. so the 4's seems reasonable, especially with ongoing wholesale cancellations.

they're going to be well capitalised but can they get back up and running before they spend the money. by no means certain

DC2007 - whats your source regarding the placing

https://www.lse.co.uk/news/CCL/london-market-close-stocks-drop-as-uk-coronavirus-death-toll-rises-zd4b92kwlctwl6h.html

read it. if you have any problems with the big words, let me know, chump

click on the news tab on this website - that's where I got the info from i'm not making it up you d8ck

so they raise funds one day and next day cancel their European season. that's a bit naughty

still haven't seen the result of the fundraise. did they get it away or or not

revised target 250p

you sure about that. have you read the latest news -

At the other end of the large cap index, Carnival ended the worst performer, down 21% after the cruise line operator said it is further canceling some of its sailings, with all San Francisco cruises scrapped for the year.

Carnival became the first major cruise line to cancel sailings until the end of the year due to the coronavirus pandemic. The group also cancelled its 2020 European season of sailings.450p may still be expensive

and i'm in

why would shorts close. so they raise enough money to cover their expenses for the next 12 months. but there is significant dilution, still no guarantee that the fleet will be sailing in next 12 months (did you read the corporate update - scary!) and the new ships coming online will be delayed.

the cash only guarantees bankruptcy is staved off for 12 months. doesn't guarantee it wont happen thereafter and they cannot say with any certainty what the future business will look like.

Still plenty for shorters to gettheir teeth into.

and we haven't even seen the terms of the raise. i'd be surprised if it wasn't at a discount to yesterdays closing price, meaning there's probably another downward leg to come once financing terms announced.