Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
In the latest RNS - Costa (the Italian brand) has just committed to sailing 10 ships in 2021. That is a big positive step in the right direction. The first sailings since startup must be going well for this commitment to be made. If testing is mandatory and regular and all health and safety protocols are followed then there should not be any issues. Health and safety is taken very seriously on the ships - even before Covid, anyone who has been on the ships will recall hand sanitiser, washing hands - attendants forcing this upon you etc. RCL and NCL are also up - if/when a vaccine is announced that will be the icing on the cake.
Berniebiker, they have already set out the plan. There is cash on the books for contingency and they have restarted sailing (albeit only a few ships at the moment). As more ships sail, money starts to come in, meaning that the cash lasts longer. Hopefully, by say next summer they are generate positive cashflow and can start to repay debts etc. Have a good read of the quarterly updates on the website.
@berniethebiker, the 30% fall in value in IAG was due to a rights issue well below the market price (Eur 0.92). This article should help explain:
https://www.sharesmagazine.co.uk/news/shares/why-iag-shares-are-down-30-this-morning-and-why-you-shouldnt-be-concerned
BernieBiker, I’m not sure who that last post was aimed at. I have chosen to invest, I am not in a loss, I am not burying my head in the sand- I could, if I wanted to, exit at a profit now. I have chosen instead to hold for the longer term. By the way, the 30% drop in IAG was due to the rights issue, not a cause for concern for investors.
Grayling, these ships were due to leave anyway in the next few years - they generated just 3% of the company's revenues. So they are getting rid of the most inefficient , oldest and least profitable ships - nothing wrong with that in my opinion.
carvegyber, agreed, this all comes down to attitudes for risk and knowledge of the company. I have a deep knowledge of what is happening at CCL through extensive research and industry sources. I understand the business, what is happening now and where it is going. For that reason I am happy to remain invested and may invest more, should the price dip further. As I said previously, I am still in a profitable position - I didn't hold any shares in CCL pre-covid.
I agree, this is not a share to go in to blind, without all the information in hand and understood.
Talkingsense, I am confident that this will recover, it is just a case of waiting - will take a while but things will get better - anyone who thinks this is a get rich quick needs to take a good look at themselves.
The ships are in warm layup mode, not cold layup - read up, it is fascinating. They are costing money for fuel etc anyway (they are being kept this way so that they can restart operations quickly when they are ready) - there will be an incremental cost for restarting cruising, however, not large. There must have been a lot of money spent on making people redundant etc which added to Q3 costs. If people use their FCC, then it is less money to pay out to customers, so a physical cash saving. The cash pile is a much needed contingency, as more ships start to sail and we are past the winter, I can only see this going one way, and that is up - patience is required for now.
Carvegyber, they are sat on several billion of cash to get them through this. The company has already started sailing, a stepped approach (Costa is already sailing and Aida to start next month). As money starts to come in, the net cash outflow will reduce. This share will not make you rich overnight, it is for the long term. Despite the fall today, we are still quite a way above the share price of this time last month. Surely we can't expect the share price to travel in a straight line upwards all of the time? I personally am in profit overall and happy to hold for the long-term.
There are different brands that generate different amounts of income etc and different grades of cabin. Chinch and botbot, you both have good points, however, it is a lot more complex than that. It is simplistic to suggest that cruisers only spend £800 per week, per person. Many cabins cost a lot more, some cost less. This was a very profitable business before - if you look at the Q2 release, the companies only needs part of the fleet to be sailing to generate positive cashflow. As long as this happens, the company cannot go bust. Carvegyber, you need to go and research the difference between cashflow and profit and loss.
MrMagic may I ask you what your experience of cruising is? It would be interesting to get some context here. I have cruised before, most recently last year. It would be interesting to note whether your comments/research are based on news, or actual experiences.
Also France has announced a €100bn stimulus plan.
GlaxoSmithKline and Sanofi have said they’re ready to start testing their protein-based Covid-19 vaccine on humans for the first time. These are big companies, fingers crossed!
Caitlin 1, where is this please? I haven’t seen an RNS.
Ironically, Aida and Costa are part of the same group. At least Carnival will benefit from the resumption of Costa, for confidence sake more than anything else.
pappalazz, there was no US bailout......they have taken on debt; no bailouts that I am aware of.
A positive announcement on the delivery of two new ships (one imminent - before the autumn):
https://www.worldofcruising.co.uk/po-cruises-delivery-date-new-cruise-ship-iona/
Nomad1, I have it from a very reliable source. I also just googled it -
https://cruise.blog/2020/07/carnival-denies-rumors-it-will-sell-cunard-or-seabourn-cruise-lines
Cunard and Seabourn are not being sold - that is definitely fake news.
Actually it's alot more than 4.2bn - look again (told you it was complex stuff!).
I listened to the update call on 10 July - there were a few key positives on that - one was the sub 5% interest rate; another was the fact that they only need to sail a small proportion of ships to generate positive cashflow (25 - 30%, so even half ships at reduced capacity would get there). As they generate positive cash flow, cash burn drops and so the cash lasts longer. That, with the huge demand for when cruises return is enough for me to stick around.