Year's End Appears To Be Timely For Buying Cruise Shares

Tuesday, November 02, 1999
Now is the time to buy cruise shares, says a cruise industry review released by Lazard Frères & Co., which notes that although shares have been up and down in the past few weeks with only a 1 percent increase in the last month, the relatively defensive performance of the cruise/leisure segment is encouraging. The report states cruise shares are sensitive to any data showing a slowdown in consumer spending in 2000. In September, a decrease in the Consumer Confidence Index was enough to cause a 7-8 percent drop in Carnival and Royal Caribbean shares. However, a closer look showed a tendency of the CCI to soften in autumn months. At 134.2, the CCI is 6 percent higher than a year ago, actually suggesting stronger confidence among consumers. According to Lazard Frères, the stage has been set for a first quarter rally in consumer stocks driven by a reversal in what appears to be a temporary widening of borrowing spreads, caused by Y2K concerns that should subside by the end of the first quarter. If borrowing spreads start to narrow in the early months of 2000, a rally in consumer spending is likely, and will probably be led by cruise shares. Since fourth quarter cruise bookings are usually seasonally slower, and cruise lines often discount year-end sailings, the fourth quarter is a difficult period to get a consistent indication of pricing or demand in the coming year. This year, the report says, the influence of millennium travel clouds the picture even further. The first firm indication of cruise shares performance for the new year, according to Lazard Frères, will not be until late January to early February. Generally, though, the first quarter has been favorable for cruise stocks, reinforcing beliefs that the shares are a timely buy.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Homecoming Scotland 2014 Fireball Championships

Lerwick Harbour is ready for an exciting week of sailing with the 2014 Fireball European Championships taking place at the port next week. As a warm-up to the main event,

Iraqi Kurdish Oil Nears US Port Despite Concern in Washington

A tanker carrying crude oil from Iraqi Kurdistan is just one day away from arriving at a U.S. port, according to ship tracking satellites, despite Washington's

Phillips 66 Marine Fueling Facility Nears Completion

Phillips 66’s previously announced marine over-the-water fueling facility at its Richmond, Calif. terminal is nearing completion. The facility, located on Canal Boulevard, and known as Pier No.

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0730 sec (14 req/sec)