Just taking a look at $CCL $CCL.L after seeing it fall again, down another 12% today.
Another of their ships, the Grand Princess, is potentially the site of a new COVID-19 outbreak following hot on the heels of the Diamond Princess which has only just faded from the news.
https://www.theguardian.com/world/2020/mar/04/coronavirus-san-francisco-cruise-ship-grand-princess
The move since mid-February has been eye watering, moving from nearly $52 down to under $29 today. I nearly bought this at the beginning of the week when it looked like the cruise ship story would now be slowly forgotten and it’s really unfortunate for them that another ship is centre stage once again.
The last time that price was at this level was back in 2012 when the $30 area held as support but it has been lower and the demand slump of the financial crisis in 2008/9 saw price test under $20 for quite a while. Credit to them for surviving that period and going on to post ATH’s over $70.
I think this is a very interesting prospect, but with testing currently in progress on the ships passengers it’s very hard to know how this unfolds. If many infections are confirmed then it’s going to really hurt the Cruise Holiday industry this year I think.
Fellow competitor $RCL is down over 16% in sympathy and this sector is really taking it on the chin at the moment.
Carnival has been a great dividend paying stock though, own great brands like Curnard, P&O and Princess, plus with an ageing global population, cruises has been a growing sector.
I’m definitely going to watch this one and try and hop on for a recovery when this saga calms down.
I’d be interesting in other opinions on this one if you’ve looked into it or already jumped on board given the apparent value.
Thanks for your time.
$SPX500 $UK100
