Martin Cobb, ASIP Carnival Corp. CCL-N BUY Feb 05, 2025

The Baltimore bridge collapse saw a knee-jerk reaction to these shares. Cruising is growing more popular. This will do well. Strong fundamentals.

Took on debt during pandemic, so now a much worse business. He'd rather own businesses hurt during pandemic, but are better today. Cruises makes sense for aging population. Cruising business is tough. He'd rather own a BKNG, ABNB, MAR or HLT.

He bought this at $10 so has made good money. Expects it to go to $20. It has taken on a lot of debt so managing it is important. The chart shows a bottom and now turning up although it is volatile. The 5 year chart shows the price still hasn't recovered from pre-Covid. No dividend.

They reported a beat yesterday and shares popped. You may think that taking a cruise is expensive, but some of the features on these cruises are actually a good deal.

Up till Covid, well-positioned to take advantage of increased cruising. Had to offer new shares, which diluted shares and increased debt. Clawing their way back up from lows. Cruise industry is very positive for next 12 months. Down with overall market today.

RCL is in better shape and better managed.

Some say that pent-up demand from pandemic is done. However, he thinks there's still some gas left in the tank. Consumers still want to get out. Stock's been extremely choppy. Well run, great management.

Don't buy at these levels for the long term. A play over the next 2-3 years on the premise that economy will not fall into recession and discretionary service products can still stay afloat.

Likes the idea of travel stocks longer term, given global demographics. Trending sideways for the last year, 200-day MA is flat. Though lower interest rates will help the debt situation, you also need to be concerned in the near term with the consumer and the economy.

He'd prefer a name like RCL.

Last week, transportation started to tick up, and he'd include CCL in that group. This one has just broken out of a range, and he really likes the breakout above $20 from the base. If his call on the broader market is correct, should be upside into first half of next year. Could then see retest of highs of 2021, around $30.

It reports Friday. Cruiselines are the most bullish industry on the S&P. You make money anywhere in this group; the street loves it. He expects a good quarter.