The economics of cruise ships

Discussion in 'Wall St. News' started by dealmaker, Mar 15, 2020.

  1. newwurldmn

    newwurldmn

    That actually does happen
     
    #11     Mar 15, 2020
    murray t turtle likes this.
  2. I didn't make an argument for or against but pointed out they have skin in the game and will likely get the benefit if local bailout support.

    Also cruise ships are SERVICE providers, not a manufacturer that produces a product and then sells it locally generating income. A cruise ship under a foreign flag is not operating in a U.S. jurisdiction, it is a unique area of maritime law.

    Honda opens a plant in Missouri, it is the State's own fault for offering tax holidays to incentivize them to open their plant there. Otherwise they would pay local taxes. And do not overlook the tax revenue generated by generating economic activity in a region - payroll taxes, income taxes, sales taxes. Florida chose not have state income taxes so that is their own fault.

    Carnival and Royal are acting within the law and under maritime law it is quite different than a manufacturer.
     
    #12     Mar 15, 2020
  3. Maybe maritime tax jurisdiction should bail them out, in that case?
     
    #13     Mar 15, 2020
  4. Glitch

    Glitch

    But what about investing in cruise ship stocks now? You'd think this is a great time to get into a long term position. When the virus clears wouldn't we see massive rebounds in the stock prices?
     
    #14     Mar 15, 2020
  5. dealmaker

    dealmaker

    Not necessarily, biggest buyer of equities has left the market ie share buybacks....
     
    #15     Mar 15, 2020
    JesseJamesFinn1 likes this.
  6. qaz

    qaz

    Being a big name in the cruise industry does not guarantee their survival over the long run during this epidemic. Good luck if you decide to invest in them.
     
    #16     Mar 15, 2020
    murray t turtle likes this.
  7. %%
    Ill just comment on one .
    CCL has downtrending chart for years+ lately its much worse. Maybe a quick trade, but most trade a dead cat bounce on the short side. I've bought TQQQ early but based on history + past profits, it may not go to zero; CCL may go to zero. [Short some also...…………………….]
     
    #17     Mar 15, 2020