$16 CCL Stock & $4 NAT Stock Update June 25th, 2020
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Today we talk about carnival cruise lines stock otherwise known as CCL stock. CCL stock is $16 right now. We will also Talk about NAT stock otherwise known as Nordic American tanker.. NAT stock is $4 right now. Enjoy!
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Well cowboys and cowgirls. Before we get into today’s video, everybody gets your floatation devices on because you’re gonna need it for today’s video. Okay, we’re talking about two different ship companies one Carnival Cruise Line, CCL stock, we’re talking about any t stock, Nordic American tanker and oil tanker company, you’re talking about both the stocks, let’s get it done.
Let’s get it talking about Okay, I’ve seen so many comments like this, please talk about csio please talk about that. I mean, every day I always see comments people want me to give updates on CCL on na t stock and I said let’s do this thing thing.
Okay, so we’re gonna do an update on these two stocks I’m gonna give you my opinion on them now if I’m buying these stocks, selling the stocks if I made any moves with them recently, we’re just going to get all of this done in one big video so I hope you guys really enjoy this let me just say man, if these ships don’t head right over the next couple of years.
I might never buy ship stock gang because these two have treated me rough man they have used and abused me these two stocks let me just put it that way. They are by far and away my two worst stocks they’ve used and abused me I’m like Jayla with that movie. And enough you ever seen that one as like me and these two stocks are now gets insane.
So I hope you guys enjoyed today’s video, as always, make sure to smash that thumbs up button that lets me know that you guys did I’ve gotten a trese amount of requests to talk about these two stocks.
And also just so you know, linked in the description down there, I have a free new video created for you guys on how to create a low risk, high reward stock market account from scratch. So that’s gonna be the first link down there in the description.
Definitely check out that you will enjoy it. Okay, so first up here, we’re talking about CCL, Carnival Cruise Line stock as of today as of recording this right now $16 a share this stock has been as stocks have one of the craziest six month charts you’re gonna find out there, okay, this stock was over $50 everything was going just the according to plan just fine.
It actually was going to be an amazing year for Carnival Cruise Line, they were likely going to have record net income this year, they were likely going to pay out some amazing dividends, like 2020 was going to be an amazing year for Carnival Cruise Line, regardless of really what happened even economically even if we have strong growth or not that strong growth.
And Lissa was like a once in 100 year event that happened called Roni Rona that could be the only thing I really messed up the business model and it did in the stock just absolutely dove like nobody’s business because hey, I mean who could have predicted the entire business model would be shut down like this is on a whole other level.
So unfortunately a once in 100 year experience has happened now nccl stock has gone from over $50 a share in the past six months to at its lows it was under $8 a share just a crazy dive in a company that’s generally a very stable company.
It’s the truth with CCL it’s generally speaking a very stable company, great dividend payer You know, this isn’t the type of stock you’re going to double your money overnight in but it’s usually not the type of stock you’re going to lose you know 70% in in a matter of a few months. But when it when a once a year 100 year event comes out like grown and grown up.
Obviously you see what’s happened. And then it went from under eight to one two all the way up to $25 a share in literally like a couple months span. Now it’s shot back down to $16 a share but that that chart there is just amazing.
Just crazy six month chart 52 week low is actually $7.80 a share. That’s absolutely amazing. Okay, let’s look at some bad news for CCL. Okay, the Miami based company posted an adjusted loss. This just came out last week post an adjusted loss of $2.4 billion, or $3.30, a share earnings of 457 million happened in the past year.
So they went from being extremely profitable to taking the most insane losses imaginable. And that kind of happens when your entire business model is shut down overnight. Like I mean, this is a gigantic corporation that literally can’t even do business right now. It’s one of the craziest things you’ll ever see in your life like this is just it’s on a whole nother level.
Like I said, you know, a recession, a recession, you can deal with the recession, if you’re CCL or any company out there. In the travel industry, yeah, businesses might just be a little down. But it’s a whole different thing when you have to be forced to be shut down for months and months and months.
It’s crazy. So losses are enormous. At Carnival Cruise Line right now. Carnival Cruise Line also announced they want to sell about a half dozen of the older cruise ships. I can’t imagine that they’re going to get you know, high dollar amounts for those ships one they’re older ships to right now.
It’s just not the best time to sell cruise ships, but Carnival Cruise Lines doing everything in their power, whether it’s raising money, selling ships, whatever they have to do to make sure they get to the other side where they can once again have their cruise business opened up.
That’s the most important thing, just getting through this without going bankrupt essentially get to the other side. And then you’re going to be a very profitable business in the future. Again, people will return to cruising we all know this is not going to happen today or tomorrow but it will happen over in future years and the company will be very profitable again.
They just have Get over the other side without going bankrupt and they’re trying to do everything in their power to do this. Okay, this news just came out about two days ago, Royal Caribbean Carnival Cruise Line and all the different players out there.
They all basically said that they’re not going to cruise until at least October. Okay, so now we’re looking at at least October until these guys are ready to get up and cruising second quarter 2020, Carnival Cruise iccl stock, and that was $7.6 billion of available liquidity.
And the company expects to further enhance future liquidity, including through refinancing scheduled debt maturities. In addition, the company has $8.8 billion of committed export credit facilities that are available to fund ship deliveries originally planned through 2023 total customer deposits balance as of May 31 2020, was 2.9 billion.
That’s actually a really good sign there. Okay, if we were talking, I was trying to find some good news in that the customer deposits Okay, including 475 million related to cruises during the second half of 2020.
So between looking at what they have for their credit facilities, as well as customer deposits and things like that, I would say as of right now, as of today, I would say there’s a 6040 chance to go bankrupt, a 60% chance they do not go bankrupt and a 40% probability they do go bankrupt.
Essentially, meaning there’s a better probability that they’re not going to go bankrupt, then they do go bankrupt. And that’s good news. That’s as of today. Now, this this number can change dramatically.
If cruising starts again in the fall that that bankruptcy number is going to go down to about 10%. In my opinion, we’ll go from the 6040 to about 9010. Okay, if they can get back cruising in the fall, if they can’t even cruise in the fall, and they have to wait all the way until 2021 to start doing cruises, then we’ll actually flip flop here.
And we’ll go from essentially a 64 to actually a 4060, where there’s a higher probability of bankruptcy, if they cannot start doing cruising in 2020 at some point, but as of right now, it’s a 6040 chance.
Now something interesting I received a DM in my private stock group the other day in the discord chat. And somebody that works for a travel agency that does a lot of business with Carnival Cruise Line and the cruise operator in general, they said essentially, they’re actually seeing very strong demand for people booking cruises in 2021.
This is very intriguing. This means essentially, there’s definitely a good amount of customers that are actually willing to book cruises in 2021. And it kind of makes sense, right? People have been cooped up in their house, they want to live life a cat man, they want to go on trips, they want to grow, go on cruises and things like that.
And so a lot of folks are figuring Ronnie Ron is gonna, you know, kind of pass throughout this year, maybe even into next year. And let’s go on a cruise man you can book for obviously very cheap right now compared to how you can usually book and a lot of folks are saying, I’ll take that risk, I’ll take that risk of whatever it is.
And I’ll book for 2021 Hey, man, I live in Las Vegas. Okay, and I’ve been down in Las Vegas Strip several times on the weekend since we reopened just a few weeks ago. And I can tell you, that’s actually a good amount of people that are coming out a lot of them drive in from California.
But just a lot of people in general it’s not like it’s back to 100% of what it used to be I can tell you that but there’s still a good amount of people that are willing to travel and eat up these deals and get out of the house and go do something so I can definitely see that if that’s already happening and 20 I can definitely see people looking at 2021.
As let’s go on a cruise at the end of the day you know I don’t even know that was still a business where people actually you know call a travel agency I guess some people still do it when I booked my cruise this past year right before Ronnie Ron and took off actually just went to Carnival Cruise Lines business but right now man is really cheap.
Okay, now in terms of me and my buying selling Carnival I’m still holding my shares of Carnival Cruise Line. What I’m hoping for I have my fingers crossed for this. I’m hoping that Carnival Cruise iccl stock is $15 or lower come September October range of 2020 Why is that?
Well, that is when the Jan 2023 calls and puts come out in what I would love to play. Assuming they get a backup and running as far as their cruises go in the fall time and assuming the share price around $15 or lower.
I would love to buy some out of the money 2023 call options in this particular stock something around an $18 strike price or something that is what I would be looking at essentially so if that happens.
I’m definitely interested in some out of the money calls not doing that heavy but I do look at that as you know a potential opportunity as the business bounces back over the next few years and so that covers CCL stock there hope you guys enjoyed that one no on to Nordic American Tinker stock ticker symbol na t as of today this stock is $4.32 people want to know am.
I buying this stock selling a stock What the heck is going on with na t stock? Okay, let’s talk about any t Okay. Let’s get the one good news out first. Okay, about the only good within at stock recently.
I did receive a dividend of $966 into my fidelity account on the fifth. Okay, the fifth of June so that’s the good news is I did receive that 960 $6 dividend. Okay, let’s get into some bad news because there’s definitely some bad news.
It’s not like there’s no reason why the stock has gone down recently. Okay, Suez maxes, this is what na T has. They have Suez max tankers, they hold about a million barrels of oil. Okay, Suez maxes, this is what na T has in the rates have been in basically freefall for about two months straight.
Now, just in complete freefall. We knew the old rates they were getting, it wasn’t going to hold up forever, we knew it was going to fall. But that that’s just straight freefall, we’ve been in for the last two months has scared a lot of investors out of the stock, it’s caused a lot of selling pressure. And that’s why we’re at a stock that’s in the $4 range here today.
I mean, this came out that we’re going to get new numbers, by the way, coming out tomorrow, around this, you can actually see the numbers on any Ts Investor Relations page. But as of right now, the numbers have been dropping last week.
13.9 was a tanker market index for the Suez maxes. Now, this week was 12.5. Let’s hope the numbers didn’t go down. Again, let’s hope Okay, the numbers go down again this week, because like I said, this has just been in freefall for literally about two straight months.
This chart shows you essentially where the tanker market index has gone monthly. Since essentially April right April in reaches an all time high, and things are amazing. Just amazing. We knew that was unsustainably high, you have a it’s not gonna keep up there forever.
But I mean, literally just look at the freefall. It has just gone down and down and down and look at how much lower it is than where it was just a couple months ago. It’s not even remotely close.
The good news, okay, you want to find some good news in relation to nit stalker these oil tanker socks is essentially, the fact that the numbers are still much higher than where they were in 2018, or 2019.
Now 2018, and 2019. were awful years, just awful years, during basically the whole first half into the middle of those particular years. Okay, so it’s not really the ideal situation don’t want to really be anywhere remotely close to those numbers, but they are higher.
Okay. So that’s the one good news, it’s higher than it was in 2019 2018. Although that’s not saying much 20 year to date is still substantially higher than any year in recent history. And that’s another piece of good news.
They’re 2020. Still, you know, really good overall. But what do we need when it comes to any t stock to get the stock moving in the right direction, again, which is upright stability, this is what we need in the stock, we need the tanker market index to stop this freefall, it has been and we need some stability, we need things to evened out a bit, and maybe even start inching up.
We don’t need it to go back to 120. Like, that’s completely unrealistic, that’d be a beautiful, if that happened, that’s not more likely, it’s not happening. Okay. If that did happen, the stock will go parabolic. But more than likely, that’s not happening.
So all we need right now is we need stability, we need these numbers to kind of even out maybe start to inch up. And then once we get into September, October, November, December through the fall, we really need those numbers to start ramping up.
This is what we need, if we’re really going to see nit stock move up in a major way, which is what I’m sure a lot of us would love. I mean, a lot of us are in it for the dividends as I am. But you know, in terms of stock price, and getting to a place where we’re all profitable on this and money’s made, we really need those rates to stabilize right now.
And we need them to start going up, you know, come fall time essentially. Okay, if that happens, let’s be very clear. If that happens, the stock price will be going up likely if we can get stability, and we can get those Tinker rates moving back up in the right direction, you know, especially if we can get it done before fall time.
But even in moving into fall, we’ll likely see the stock move up again, because it’s been such an amazing 2020 We just need stability, man, we can’t keep having these tanker rate reports come out. And every single time it’s just down and down and down.
It’s you know, investors just aren’t going to buy into the story. They’re like, everything’s getting worse and worse. Why would I want to buy into that? We need things to change. And hopefully that will happen.
We’ll obviously see what happens there. Definitely check out na T’s Investor Relations page every Friday, they come out with a new reports and let’s just track those two as max numbers and let’s see if it continues to be in freefall, or we start to turn the right way.
As you guys know, I’m planning on holding this one for one to two years. That is my plan with this one I should get paid out some very nice dividends. And hopefully, whenever I do sell out this, I sell it at a profit it’d be nice to collect a bunch of dividend money and sell the stock for profit.
That is my hope in this one. We just need tanker rates to start moving in the right direction again Okay, so that is my opinion on nit stock CCL. Hope you guys enjoyed this. As always, don’t forget the first link down there in the description if you want to learn how to create a low risk high reward stock account from scratch.
I got a full video for you linked down there in the description. Definitely check out that and enjoy it. Thank you for watching and have a great day.