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JimVanMeerten (61.35)

Carnival Cruises sinks again

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7

January 25, 2012 – Comments (2) | RELATED TICKERS: CCL , AXP

Carnival Cruises (CCL) is having one fiasco after another.  I had just about talked my wife into an ocean cruise when the Costa Concordia owned by Carnival hit the rocks and sank on January 13th.  I was watching the news on January 24th just as divers pulled another missing body from the wreckage. I could hear the postman's truck coming down the street and went to get my mail.

To my surprise there was a joint mailing from Carnival Cruises (CCL) and American Express (AXP) offering me a $100 on board credit if I would book a cruise on the already sunk Costa Concordia.  I called the 800 number on the offer to give them my opinion that it was not only in poor taste but a marketing blunder by them for not pulling a mailing weeks after the ship had sunk.

To my surprise instead of getting an apology and maybe a offering of a discount on another cruise - which is what I would have done if I managed the call center - the phone rep started ripping me a new one.  When I voiced that I thought she was out of line and asked to speak to a supervisor she really let loose on me again and hung up on me.

I was stunned!  Here was an opportunity to perform damage control and market to a potential customer another cruise and they chose to blow it by attacking me.

I wasn't a new customer.  Last summer my mother and I took a very enjoyable 14 day cruise to Alaska on the Holland America ship called the Amsterdam and thought the $12,000 total we spent on the cruise was a great value.

Enough about how poorly Carnival is handling this disaster let's look at the numbers.  They tell me more than just the ship has hit the rocks:


Barchart technical indicators:

1 - 96% Barchart technical sell signal

2 - Trend Spotter sell signal

3 - Below it's 20, 50 and 100 day moving average

4 - 35.44% off its previous 1 year high

5 - Relative strength Index 41.15% and sinking

6 - Recently traded at 30.79 which is below its 50 day moving average of 32.73

2 Comments – Post Your Own

#1) On January 25, 2012 at 12:59 PM, SultanOfSwing (99.10) wrote:

I don't know if it's true, but I heard they're offering a 30% discount an any future Costa cruise to surviving passengers from that doomed voyage.  As if that's going to make things alright.

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#2) On January 26, 2012 at 12:53 AM, XXX222 (< 20) wrote:

It's rumored that the ship is totally unrecoverable. It's a shame. I'm not even sure how they're planning on getting rid of it now. Cut it into small bits with welding torches, maybe?

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