BigOrangeMojo
The Member in Miss December
- Joined
- Jan 24, 2017
- Messages
- 24,635
- Likes
- 57,844
It certainly Could? OTOH, it was in the 40s most of late 2019, and it paid a dividend. I doubt they will be paying one for a while.
The elephant in the room is the virus. Most of the time on cruise you are inside. Public spaces are a problem. Dining rooms have become very crowded in recent years. Most evening shows are performed twice in mostly full venues. Bars, worse than restaurants?
Not saying everything will not be great, but it will at least take an effective vaccine which looks like next year.
Of course, CCL had 650MM shares outstanding when it was in the 40s, it now has almost a billion shares outstanding (factoring in their preferred stock conversion feature). That's some crazy dilution. They've had to borrow $$$ at double digit rates. I think mid 20s is about as reasonable as you can see in next 24 months. That's still a jump from here but it's no more of a jump than LUV, SAVE, MAR, HLT.