Author Topic: Don't Be Fooled. Carnival Will Crash Again (Seeking Alpha writers opinion)  (Read 490 times)

Offline Host Mike

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"Carnival has been destroyed by the COVID-19 pandemic. In an effort to survive, the company has raised over $6 billion in cash and as a result of this, will be able to survive the next year avoiding bankruptcy. This reassurance and the announcement of a major stake by Saudi Arabia have boosted investor sentiment and has shot the stock up 50% from its lows of around $8. Unfortunately, this recovery will not last and a second wave is coming. As restart deadlines continue to be pushed back and more cruises get cancelled, the situation for Carnival will get worse and last much longer than what many believe, forcing the company to once again take desperate actions that hurt common shareholders. Factoring in this risk, I believe a more reasonable valuation for Carnival is around $6-8 and soon the stock will be heading toward these levels."