Tuesday, December 23, 2008
Sell of Carnival
We recently sold Carnival for a gain of 30%. The company did come out out with good numbers when they reported but this was mainly due to a decrease in oil prices. Management reported that they see a weak economy going forward for their industry especially due to low amounts of booking going forward. This is one of the reasons I wanted to get out of this company now but the main reason is oil prices. The reason they were able to come out with great numbers was due to the fact of oil being so low and I don't think this will be the case going forward. Granted, oil is at extremely low levels but I don't think it will stay around this level for very long. Management reporting a weaker outlook has scared me and the possible combination of increased oil prices can be catastrophic for this company and industry.