Cruise CEO's Cash In Carnival Stock

Caribbean PrincessThree cruise CEO's sold their Carnival (CCL) stock a week ago for a combined total of nearly $9,500,000, according to Market Digest.

On December 29,2016, Stein Kruse, the CEO of Holland America Group, Alan Buckelew, the Chief Operations Officer of Carnival Corporation, and David Bernstein, the Chief Financial Officer and Chief Accounting Officer of Carnival Corporation each sold 60,664 shares of Carnival stock at $52.11 per share for a total value of $3,161,201.00.  

Mr. Bernstein has been the CFO and Senior Vice President of Carnival Corporation since July 2007 with oversight of all finance, accounting, treasury, insurance, tax and investor relations functions. Mr. Buckelew, who was recently appointed to the Chief Information Officer of Carnival Corporation, previously served as the CEO of Princess Cruises from June 2007 to November 2013 and its President from February 2004 to November 2013.

The DOJ recently fined Carnival Corporation $40,000,000 for widespread discharge of oily substances, falsification of log books and lying to the U.S. Coast Guard regarding five cruise ships operated by Princess Cruises over an eight year period from 2005 through 2013. The Carnival owned cruise ship operated by Princess Cruises which were involved in the scandal are the Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess.

The issue arises what the cruise executives knew about the long standing "magic pipes" and financial irregularities associated with certain Princess Cruise ships having lower operating costs associated with not having used the vessels' oil-water separators and avoiding the costs associated with offloading and disposing the waste oil in shore-side facilities. Did these executives really have no idea that these Princess ships were engaged in these environmental crimes?

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Carnival CEO Arnold Donald Extends Contract, Sells Over $4,000,000 of CCL Stock

Arnold DonaldCruise Industry News reports that Carnival Corporation recently confirmed in a SEC filing that it had extended CEO Arnold Donald’s employment agreement for an additional year.  

You can see the original terms of his three year employment plan filed with the SEC in 2013 here

Mr. Donald collected $9,373,908 in 2015.

The SEC also reflects in a seperate filing that on October 20, 2016, Mr. Arnold sold 91,813 shares of Carnival stock, totaling $4,285,142, in multiple trades at prices ranging from $46.51 to $46.99 for an average price of price of $46.70. Mr. Donald reportedly currently owns 532,340 shares of CCL stock which, at today's value, is worth $24,892,218.40.

Mr. Arnold is generally considered to have done a good job guiding the cruise line after a disastrous series of groundings and engine room fires several years ago.  He has overseen Carnival while it invested attention and money toward the maintenance of its fleet of over 100 cruise ships; however, Mr. Donald remains susceptible to criticism by overworking and underpaying Carnival crew members. 

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Photo credit: CNBC

Mad Money's Jim Cramer Gives Carnival Thumbs Up

"Mad Money" host Jim Cramer is a fan of Carnival Corporation (CCL).

He used to associate the word "disaster" with Carnival Cruise Lines. Between the Costa Concordia sinking, engine room fires, the Triumph "poop cruise," passengers sick with norovirus, the Arab Spring - it "seemed the company was doomed," says CNBC.

But Carnival has enjoyed a turnaround with its stock hitting new highs. 

I think its a tad late to get in on the CCL run, plus it takes only one Carnival cruise ship hijacked or attacked to send all cruise stock falling dramatically. But its always fun to watch Cramer ramble on in his unique way.