This weekend Barron’s roundtable member, Brian Rogers, plugged our largest holding, CCL. If it gets the bounce we expect Monday, we’ll probably lighten up a little as we have an outsized position.
When asked about his next pick
Someplace controversial. Carnival [CCL] is a leading cruise-ship operator battered by a series of accidents and self-inflicted operating snafus, beginning with the Costa Concordia‘s capsizing in Italy in 2012. Recently, there have been malfunctions of water/sanitary and engine-power systems on several cruises. There are few companies with worse PR and press coverage. The stock has dropped by 12% in 2013. Management is in crisis mode in pushing to get things back on track. While actions taken to improve operations and attract customers are hurting this year’s earnings, the company could earn between $2.50 and $3 a share several years out. The stock is selling at about book value, with a 3.1% yield. Carnival is an interesting contrarian investment.”