Shares of Carnival have had a good run since summer time and have moved up 33% over performing the Dow Jones which is up around 18% over the same period. However today you may have a branding issue as the Carnival Splendor was 200 miles south of San Diego when an engine room fire cut its power early Monday, according to a statement from Miami-based Carnival Cruise Lines.
The 3,299 passengers and 1,167 crew members were not hurt and the fire was put out, but the 952-foot ship had no air conditioning, hot water or telephone service. Auxiliary power allowed toilets and cold running water to be restored Monday night.
Stock watchers noticed that Put Options were active and I was a bit surprized the stock was holding up. The question becomes how this will effect Holiday revenue numbers. But based on the industry as a whole, the share price seemed over valued.
The Mexican Riviera-bound ship, which was drifting about 55 miles off the northern Baja California coast, was in contact with the U.S. Coast Guard, which deployed aircraft and ships along with the U.S. Navy and Mexican Navy.
Mexican seagoing tugboats contracted out of the port of Ensenada were expected to reach the cruise ship at midday Tuesday and arrive back at the port around 8 p.m. PST Wednesday, Coast Guard Petty Officer Kevin Metcalf said. Metcalf said the tugs, which will be escorted by a Coast Guard cutter, must move slowly because the ship is so big.
Passengers will be taken by bus to California, said Joyce Oliva, a Carnival spokeswoman. She said she was unaware of any safety concerns from passengers or their families about traveling by bus in Mexico.
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