To no one's surprise, cruise liners like Carnival (NYSE:CCL, NYSE:CUK), Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH) have been especially hurt by the novel coronavirus. At this point, they're all interchangeable. However, Carnival is notable for its now notorious Diamond Princess ship, which became the face of the all-too-familiar quarantining protocol. As a result, CCL stock finds itself down more than 72% year-to-date.Source: Ruth Peterkin / Shutterstock.com However, that kind of loss inevitably invites speculators and those who are rookies to the markets. Sure, CCL stock looks like it's on a discount. While the environment looks awful today, we recognize the need for vacations – especially from such stresses as shelter-in-place orders. Therefore, many are reasoning that Carnival and the broader cruise ship industry will make a recovery.Giving fuel to this narrative is that Carnival announced earlier this month that it plans to resume service on Aug. 1. This is a week after the end of the Centers for Disease Control and Prevention's no-sail order for the industry. Since early April, CCL stock has been steadily creeping higher as positive sentiment trickles in.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOf course, the CDC isn't happy about Carnival's intent. The agency is on record stating that traveling aboard cruise liners "exacerbates the global spread of Covid-19." But they might not need to be so vocal. It's the people who decide with their wallet what they want to do and it's not clear they'll return to the open waters. * 7 Excellent Penny Stocks Ready to Roar Recently, the Washington Post noted that 58% of American adults are concerned about going back to work, fearful that they might inadvertently infect their households. Imagine the sentiment for a non-essential function like going on a cruise? Economic Realities Work Against CCL StockFor those that think this industry offers untapped recovery potential, I would reconsider the thesis. Unlike other disasters that we've faced in this country, this is a crisis that has impacted in some significant way every American. Indeed, much of the world has suffered acutely from the pandemic.Therefore, I don't believe in the quick recovery narrative that you would find associated with, for instance, tragic accidents. That airplanes crash or that boats sink is an accepted risk that consumers take, particularly because these incidents are rare.But now, consumers have tuned into a new risk, that of an infectious disease spreading aboard. Actually, the risk isn't new but the concept of governments taking extreme quarantining measures is. That's not something that consumers will easily get over, which clouds the bull case for CCL stock.Beyond that, I also have concerns whether would-be travelers are able to go cruising. Much talk has been made of the latest jobless claims report, where 2.4 million have filed for unemployment benefits. Over a nine-week period, nearly 39 million Americans filed for aid. Click to EnlargeSource: Chart by Josh Enomoto Several media pundits have pointed out a silver lining in the otherwise stark data. Since jobless claims hit a peak around late March/early April, the number of people making claims has declined significantly. However, I don't see that as good news.When the crisis first became serious, virtually all non-essential services (i.e. restaurants, sporting events, movie theaters, etc.) shut down. That left millions of service industry workers out of a job, explaining the massive spike in claims.Now, as states reopen, we should see these early impacted workers get their jobs back. Logically, this suggests that the recent jobless claims are coming from higher-paid occupations. These are the type of folks that would go cruising. Black Eye on the Industry Won't Be IgnoredIf the discussion above wasn't enough to dissuade you from CCL stock, here are two interesting nuggets that I discovered: * Millennials love ESG stocks, or stocks of companies that rank highly for environmental, social and corporate governance principles. So much so that this group has outperformed during this crisis relative to non-ESG names. * Millennials love CCL stock, especially at these deflated prices. That's according to Robinhood, whose investing app is very popular among the younger demographic.This is a glaring contradiction. As of May 14, the U.S. Coast Guard that almost 60,000 cruise liner crew members are stuck at sea in U.S. waters. Of course, this includes many from Carnival's payroll.To be fair, Carnival plants to repatriate tens of thousands of their crew members throughout the world through various means. As well, bureaucratic roadblocks have utterly failed those who have been stranded. It's not accurate to heap all the blame on the cruise ship operators.Nevertheless, it's an ugly black eye for the industry because the buck has to stop somewhere. And terrible tragedies of desperation have occurred among those forcibly quarantined.Therefore, I expect that this news will filter down to the millennials who love CCL stock so much. It's too much of a paradox to see travelers enjoying their vacation while thousands have been sentenced to glitzy, floating prisons.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Carnival Is Hitting All the Branches of the Ugly Tree appeared first on InvestorPlace.
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Aurora Cannabis Interim CEO Michael Singer and Reliva CEO Miguel Martin join Yahoo Finance’s Zack Guzman to discuss Aurora’s acquisition of Reliva, and more. Now the experts are brave talking Boeing (NYSE:BA) stock up. Yesterday RBC rated it with an "outperform" rating and a $164 price target. Meanwhile, when the true opportunity presented itself during the novel coronavirus crash they were all silent about it. Below $90, BA stock was a blind and emphatic buy. Most of Wall Street missed it. Chasing headlines is rarely a smart thing to do. With that in mind, here are some key things you need to know about Boeing stock moving forward.Source: VDB Photos / Shutterstock.com I did my share of looking at charts during the March Covid-19 crash and wrote about my conclusion then. Boeing stock rallied almost 100% thereafter, so the gift was indeed fantastic. Moreover, the stock took a few more whacks from silly headlines, and those dips were also opportunities to buy. The most recent was a week ago and that entry point is now 30% higher. Clearly, this stock is back to its old ways of buy-the-dip mode. But that is not the same as saying that it is out of the woods completely.The headlines are still coming and from all angles. Boeing stock will fall on bad news from all travel-related stocks. Its clients are airlines and they are still suffering from hiccups in travel and entertainment sectors. Not to mention that the company is still under political pressure over its 737 Max model. But for now, I am a buyer of the dips and eventually this stock is headed to $220 per share maybe in 2020. I know this sounds like a pipe dream, but let's line up a few facts to support it.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Boeing Stock Fundamentals are Still Rock SolidOn its worst day, the Boeing sales pipeline is beyond reproach. It is one of only two major jet manufacturers on the planet. They are both booked solid for years. The global quarantine did cause a lot of cancellations but that problem for them started last year. The grounding of the Max was a major disruption in the order flow. Covid-19 merely made the problem worse. My thesis is that the authorities will let the 737 Max fly again and that is a headline that will cause a leg higher in BA stock. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets Fear is at an all-time high over the global business outlook but specifically for travel. The debate over the future of U.S. airlines is hot. Don't take my word for it, you heard it from high profile and controversial statements from billionaire investor Chamath Palihapitiya, and more recently even Boeing CEO David Calhoun suggested the likelihood of a major U.S. Airline folding. Clearly Wall Street is on edge over investing in travel stocks. BA stock sits in the line of fire and suffers in sympathy. If its clients, the airlines, go out of business, Boeing is not going to be selling a lot of planes to them.To be fair it is hard to judge the stock metrics using price-to-earnings ratios. Its top line has been hostage for two years, so I have to assume that the sales pipeline speaks better truth than actual revenue accounting. They can't book the sale without delivery so they need the Max to be free for that. Once that headline hits, I bet the burst higher will be wild and sustainable. Shorts will be carried out on stretchers. Chart Patterns Support a Big Rally for Boeing StockSource: Charts by TradingView I am a strong believer in the technicals because charts don't lie. This is why there is the adage that "price is truth." In this case, the long-term weekly chart suggests a bounce to $225 per share, and the chance to over-shoot by $25.This was an important zone of a giant burst in July 2017 and traders will be eager to trade around it once more. Also there is a big gap left open from the fast collapse on the way down this march. As far-fetched as it seems, I bet that machines will want to go through those zones sooner rather than later.Even if investors don't believe in technicals, the bounces off the lows confirm that the downside is limited. So owning the shares for the potential mega spike has a very favorable risk to reward ratio. There are more nuances on the chart that also support this, like the recent price range. It has been tightening into a point which usually indicates that a big move is imminent. Since they are buying the dips, then the upside breakout is the more likely scenario.The bottom line is that the world has no choice but to stick with Boeing. And the investors also voted with confidence as they lined up to lend the company money. The company raised $25 billion so it now has the cash hoard it needs to come out of this crisis swinging. They could have sold $75 billion that day so there is ample liquidity to support operations. I would not bet against Boeing stock for long.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post How to Land a Great Deal in Boeing Stock While It's Still Cheap appeared first on InvestorPlace.