Posted on 03/06/2020 9:09:35 AM PST by Rebelbase
Carnival shares suffer worst day in 19 years, close at 11-year low; Royal Caribbean’s stock suffers biggest loss in 11 years
Shares of cruise ship operators took double-digit dives Thursday to their lowest closes in years, as the global spread of the coronavirus fueled fears of a drop in travel demand.
Royal Caribbean Cruises Ltd.’s stock RCL, -4.439% plummeted 17.1% to $65.78, to suffer the biggest one-day drop since Jan. 30, 2009. The stock closed at the lowest price since Sept. 19, 2016. It has lost more than half its value (51.3%) since closing at a record $135.05 on Jan. 17.
Carnival Corp. shares CCL, -3.696% tumbled 14.1% to $27.87, which was their worst performance since Sept. 17, 2001. They closed at the lowest price since July 29, 2009.
And shares of Norwegian Line Holdings Ltd. NCLH, -1.854% sank 13.4%, which was the worst day for investors since they started trading in January 2013. They closed at the lowest level since June 24, 2013.
Analyst Joseph Greff at J.P. Morgan said he believed Royal Caribbean was the “best positioned” to weather slowdown in demand amid COVID-19 fears, and therefore the best positioned to outperform “coming out the other side.” Although Greff said Royal may have slightly more balance sheet risk than rival Carnival, he wrote in a note to clients that “we currently don’t see liquidity being a major risk (though the cruise sector has an unusually high amount of tail-risk, which is hard to quantify).”
(Excerpt) Read more at marketwatch.com ...
Um, not unless they figure out why so many got sick on the Diamond Princess.
Was it ventilation? Or food handling?
Cruise ships are not set up to stop disease like the virus.
1) You quarantine in outside cabins only. Everyone needs a fresh air path.
2) Invent a hvac filter to block the virus.
We have been planning a cruise Norwegian to Hawaii, in June, for MONTHS! We go with Reasons to Believe, a Christian scholars group out of California. We went to Alaska cruise and Bermuda cruise with them and a week in London on another trip. Great group. Lead by Hugh and Kathy Ross.
Just got letter that it has been postponed for a year....
We ALWAYS get outside cabin with private balcony. Now that we have seen reports of families stuck in interior rooms with their kids, for weeks, we will ALWAYS get outside cabin with balcony or we won’t go.
There will be failures. The market for cruises will shrink and won’t expand in the near future.
I’ve been on a cruise, the family had fun. I was open to going on another until this, coupled with the norovirus infections.
I don’t need to be herded with some people who are less than clean. No thanks, I’ll pass. I wouldn’t go on a cruise now, even if I was given free tickets.
My wife and I are scheduled for an Alaskan cruise departing from Seattle in May. I recently retired, and it’s a cruise we’ve wanted to do for a long time. At the moment, we’re still planning on going, but we’ll see how things look two months from now.
Cruise ships are floating petrie dishes.
I was in a local retail store yesterday. I counted 5 different customers who were coughing. None of them covered his/her cough. And you wonder why cruise ships are bug farms?
Once this dies down, people will be cruising again.
I might scoop up some cheap Cruise stocks.
Buy when there is blood in the streets (or corona virus in the lungs).
Floating Motel 6 with an all-night Dennys.
We have a Europe cruise booked this summer with RC. So far it’s still on. They have said if it is cancelled we won’t be out anything and you if get your airfare through the cruise line it’s a big plus at least if you are on RC.I have heard some cruise lines are much better than others in this regard.We always get an outside cabin with a balcony. If you can’t afford on outside cabin with a balcony you have no business going IMHO. One thing you should know is travel insurance will not cover a pandemic.
My wife and I went on Alaska cruise in October. 3,000 + passengers on Royal Caribbean Explorer of the Seas. The Alaska coast is deserted for a reason. Only worthwhile excursion was the Gold Rush railway from Skagway to the Yukon border. Mountains rivaling the Himalayas. Amazing fjords.
After the cruise I spent a week in hospital with pneumonia then flu. If we go on another cruise, it will be on a riverboat with 100 passengers max.
“Floating Motel 6 with an all-night Dennys.”
Yeah tell yourself that, it’s that way only if you are on a Budget line with an interior room. If you are on decent one it’s more like a floating 4 or 5 star hotel only better. Like most things you usually get what you pay for
I’ve never been on a cruise, and I’m not sure if I’d like one or hate one.
I’m the type that hates buffet food, mass groups, fake this and that. I despise Las Vegas for example.
I do like the idea of being at sea, and visiting interesting ports. I wouldn’t like the mass market stuff. I have clients that have paid top dollar to only be disappointed on cruises too.
One cruise my clients NEVER complain about is Alaska. I work with affluent Seniors.
“When it gets really bad they should use the ships as quarantine centers in port cities.”
They certainly could make decent hospitals, IF they could re-route their ventilation systems.
The cruise industry, is simply GONE. I was tempted to short them when it was obvious a month ago...but I’m through gambling for this lifetime.
“Just got letter that it has been postponed for a year....”
LOL - I was going to tell you to not start packing yet. If you can, I’d advise getting a refund. I doubt any cruise line will not be in bankruptcy a year from now (and hence you’re an unsecured creditor)...and you can always book later.
I’ve been on about 30 cruises. Only got sick one time and that was on a cruise I caught in Istanbul. I got Norovirus the first day of the cruise so I could have got it from the 2 days previous in Istanbul. Seems it would be a good time to buy cruise and airline stocks. Buy low. Sell high.
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