Carnival Corporation CCL

[Ready-4-ER-at-14]

We took a cruise and was told that if we purchased 100 shares of carnival we would get an additional discount on our next cruise with carnival or any of their other cruise lines (Princess, Holland America, Seabourn, Cunard, costa).


I went to the shareholder benefit page and it appears it is a credit of $50 for <6 day cruise, $100 for 7-13 day cruise, and $250 for > 14 days.


I was looking at the chart and what the estimated earnings are for next quarter and suspect I can acquire those shares closer to 45 than the current 60 if I am patient. I am numerically thinking a trading range somewhere between 20x annual income ($2x20 = 40) and 20x eps (20x 3.93=78)


When I look at the chart I see support somewhere around 54 that would have to be broken through first. Maybe 6 months to buy at a cheaper price..


I'm asking self a few questions.

1. Do the onboard credits have a real value that can not be obtained in a different or cheaper manner?

2. I know nothing about cruise lines. The beta is 1.13 so corresponds a bit to the market, but how would a US slowdown hit them?

Am neutral re a buy right now.

Am curious what others think about this.

 

[dtbach]

The deal is for real. I bought a 100 shares and got $250 onboard cash credit which we would not have gotten otherwise. Plus in the 2 years I've had it, also gotten $400 in dividends. It's about where I bought it at but I'm ahead with the onboard credit and dividends.


I also have some shares in Royal Caribbean for the same reason.

 

[cathy63]

1. Do the onboard credits have a real value that can not be obtained in a different or cheaper manner?

There are a few cruise fare categories that are already heavily discounted and those fares are not combinable with the shareholder credit. I sometimes see people on CruiseCritic posting that they were denied shareholder credit because they had booked something like a travel agent's special group deal or an invitation only fare for heavy casino gamblers. If you can get one of those fares, you would definitely save more than the amount of the shareholder credit so that would be a cheaper way to obtain the value, but maybe not one that's easy to get. The only way to know if a fare is ineligible for shareholder credit is to ask before you book it, and even then you may not be able to get a straight answer.

Other than those few special cases, it's a real benefit that a lot of people really do claim. You have to ask for it 3 weeks before sailing, but there's no time limit on buying or holding the shares, so if you have a spare ~$6K sitting around, you can buy the shares, send proof of ownership and sell again before you even sail if you want to.

 

[Moemg]

You can just as easily get ship credit by using certain travel agents . I have cruised a lot and right now I would not invest in Carnival Corp.. IMO their ships are old and their entertainment is lacking .

 

[rsingh6675]

Does anyone know if you can get repeat the discount if you take another Carnival cruise same year?

 

[bobandsherry]

You can just as easily get ship credit by using certain travel agents . I have cruised a lot and right now I would not invest in Carnival Corp.. IMO their ships are old and their entertainment is lacking .

You get the credit in addition to any credit that your TA gives. Done it many times.

CCL has been good stock, bought 100 in 30's and have picked up over $1,200 in tax free "dividend", aka shareholder benefit, along with regular dividend and $3,000 in paper gains.

 

[bobandsherry]

Does anyone know if you can get repeat the discount if you take another Carnival cruise same year?

You get it for any cruise you have booked, except for complimentary cruises. We've done 2 cruises this year and have another in 2 weeks, $100 for each cruise.

 

[bobandsherry]

You have to ask for it 3 weeks before sailing.

Just to point out, you do not need to request it "3 weeks before sailing". You can request it months in advance, somewhere between 8 and 12 months in advance of your cruise. The benefit is approved by the CCL board each June, so that's reason for variance in the timing.

 

[cathy63]

Just to point out, you do not need to request it "3 weeks before sailing". You can request it months in advance, somewhere between 8 and 12 months in advance of your cruise. The benefit is approved by the CCL board each June, so that's reason for variance in the timing.

Yeah, I should have said "at least 3 weeks" before sailing. I was just trying to say that you can't wait until the day before you sail, but of course you are correct that you can request the benefit much further in advance as well.

 

[Souschef]

You can just as easily get ship credit by using certain travel agents . I have cruised a lot and right now I would not invest in Carnival Corp.. IMO their ships are old and their entertainment is lacking .

I am sorry, but you are confusing the corporation with Carnival Cruise ships. They also own Holland America, Princess and Seabourn among others.

 

[Moemg]

I am sorry, but you are confusing the corporation with Carnival Cruise ships. They also own Holland America, Princess and Seabourn among others.

No , I feel the RCL corp. beats them by a mile . They are inventive and their entertainment is top notch.

 

[Moemg]

You get the credit in addition to any credit that your TA gives. Done it many times.

CCL has been good stock, bought 100 in 30's and have picked up over $1,200 in tax free "dividend", aka shareholder benefit, along with regular dividend and $3,000 in paper gains.

I am sure it has been a decent stock but I just think they are losing their hold on the cruise market but it is just my opinion.

 

[bobandsherry]

I am sure it has been a decent stock but I just think they are losing their hold on the cruise market but it is just my opinion.

Ok, and in my opinion they aren't, so I guess one of us will be right. I heard this said 10 years ago, hasn't come true. What line do you this is gaining market share?

Also, do you know that CCL is not just Carnival, but also Princess, Holland America, Aida, Costa, Cunard and Seaborn? Overall holds nearly 45% of the market.

CCL adding more new ships and upgrading older ships.

 

[conversationalphrase]

We did this on Princess and again Holland America with Carnival stock a few years ago and got the credit. Then tried with Royal Carribean and were denied because the stock credit wasn't combinable with other discounts. Just check to make sure you are eligible before buying.

 

[CaptTom]

The cruise industry is full of all kinds of discounts and credits. There are lots of web sites which will help you figure out pricing for any given cruise. VacationsToGo.com is a good place to start. Sign up and you'll get regular e-mails about all the offers coming out.

I guess my point is you don't need to buy stock to get cruise deals. It's one way, but not the only way.

Another point is to look at what the onboard credits can buy. If they're only good for things like spa treatments, and can't be used in the bars or for shore excursions, you may or may not find them of much value. Sometimes a lower fare is the better deal.

 

[bobandsherry]

I guess my point is you don't need to buy stock to get cruise deals. It's one way, but not the only way.

Another point is to look at what the onboard credits can buy. If they're only good for things like spa treatments, and can't be used in the bars or for shore excursions, you may or may not find them of much value. Sometimes a lower fare is the better deal.

As a long time Carnival shareholder and 20+ cruises.... Just wanted to provide clarity.

• Shareholder credit is on top of any discounts you get from booking with TA. The shareholder credit is not an either/or, it's in addition to. There are a few exceptions, such as complimentary cruises (like duh, who thinks you would get credit for something you didn't pay for), and perhaps some group cruises. But any cruise that you book directly with TA or Carnival directly would be eligible.

• And OBC can be used for anything that is charged to your Sail and Sign card, including gratuities, drinks, excursions, anything that is charged On Board - and yes, even money in the casino.

 

[Ready-4-ER-at-14]

Thanks for the info.

I bought the 100 shares just before the market plunge but on the bright side I bought some cds (about same dollar value) just before the rate drop and they were somewhere around 7 yrs out paying 3.5%. Seems they were on the secondary market.