Carnival Cruise Lines (CCL)
Carnival Corporation (CCL)
By Timothy Lutts, Chief Analyst, Cabot Stock of the Month
Here’s what Mike Cintolo wrote about one of them in last week’s issue of Cabot Top Ten Trader:
“Carnival is one of the big dogs of the cruise industry, with more than 100 cruise ships operating under various brands like Carnival, Princess, Costa, Holland America and more. Frankly, the company hasn’t been as good a performer as some of its peers, as revenues and earnings have been relatively flat for the past five years, but better operational performance, lower fuel prices (down a whopping 37% in the latest quarter), some new ships hitting the water and a big expansion in China should help earnings surge in the quarters ahead. Analysts see the bottom line rising about 30% both this year and next. Carnival is the largest cruise operator in China, which isn’t just boosting revenues there but also creating relative scarcity in other markets as it sucks up cruise liners (hence boosting ticket prices). The company’s recent quarterly report was a good one, with earnings miles ahead of expectations, and the top brass said that rest-of-year bookings were well ahead of the pace from a year ago.”
Mike neglected to mention—mainly because Cabot Top Ten Trader is geared to traders—that CCL pays a 2.0% annual dividend. But I think it’s important, particularly if this trade turns into a long-term investment. With only a few big players in the industry, Carnival’s long-term prospects are pretty solid.
What Mike did do (as he does for all his recommendations) is provide a thorough technical analysis of the stock.
Here’s what the daily chart looks like:
And, most important of all, he provided his readers with precise guidance about exactly where to buy the stock, as well as where to sell if the trade doesn’t work out.
3655 NW 87th Avenue
Miami, FL 33178
Index Membership: N/A
Industry: Resorts & Casinos
Full Time Employees: 94,100