Carnival Cruise Lines’s (CCL) shares are rallying today because the company is close to receiving a $6 billion aid package that consists of stocks, bonds and convertible bonds.

However, the cost of this financing will be painful, with $3 billion in debt likely priced at 13% interest. This will cut into future profitability. While I think that the company will survive, I believe that the stock will weaken during the next market downturn because the company’s peak earnings power has been reduced dramatically.

Sell CCL.

If you are an Inner Circle subscriber following the model portfolio, sell CCL.