From 52 to 12-something in the span of a month.Originally Posted by Daly
Well, let me tell ya why, if Druffs belief cruise ships will sail basically full again is true (2022 and on), something I half-heartedly believe myself, maybe we should be buying and getting rich.
Here's my fake 2020 Income Statement for CCL
Well, this COV-19 thing destroyed maybe a year, year and a half...Lets say they cannot sail for most of this year and lose a bit for the part of this year where they do sail, I see: *****ALL NUMBERS IN 1,000s*****
Total Revenue Zero.Zero
Cost of Revenue 4,000,000 ===> I cut this a bit more than half...they will not likely pay employees and not much travel agents to pay
Gross Profit -4,000,000
Operating Expenses
Selling General and Administrative1,500,000 ===> figure marketing will be cut by 2/3rds while admin costs may go up
Total Operating Expenses 1,000,000 ===> cut this by 3/4ths, think this is where food/fuel etc. is counted
Operating Income or Loss -7,500,000
Interest Expense -1,000,000 ===> put down 14% interest on 7.5 billion here, aka 1 billion,
Income Before Tax -8,500,000
Income Tax Expense 0
Net Income -8,500,000 ===> this is what they lose in 2020, roundabout.
Compare this to the 3 billion a year they currently make:
The key here is that this company has no (real) debt. Yes, they have stupid costs of 8.5 billion a year while they wait to have things turn around but that is 3 years of regular income years that they've lost. Would you pay 12.50 for a company that was worth 52.50 before this?! I would, but the certainty is the problem.
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