NEW YORK ( TheStreet) -- If you're worried about what higher tax rates will do to the market, you're not alone. One thing we can all agree on is that higher taxes are not bullish for the market.We may not all be ready to agree that the fiscal cliff will come (sooner or later), but when it does, many stocks will feel the pinch. It's all pretty simple really. The government can't spend more than revenue raised forever without monetizing the dollar. For savers, the frustration of watching the government artificially keep interest rates low in a hopeless attempt at mitigating previous failed policies is heart-wrenching
- Minimum trading threshold; eliminating thin stocks that leave so many investors up late at night.
- Year-over-year results that are improving at a relative rate as stock price increases; we want plenty of reason why the stock should continue higher.
- Analyst price targets that are higher than the current price; we want others after us to continue the buying pressure.
- Limited insider selling; because of compensation methods and diversification goals, some insider selling is acceptable, but management should have skin in the game.
- Low short interest; I consider short sellers to be the smart money -- there is no reason to bet against them when we have plenty of stocks to pick from.
Carnival (CCL - Get Report) Carnival is one of the world's largest multiple-night cruise companies. The company offers a broad range of cruise brands serving the contemporary cruise sector of the vacation market through Carnival Cruise Lines and Costa, the premium cruise sector through Holland America Line and the luxury cruise sector through Cunard Line, Seabourn Cruise Line and Windstar Cruises. Carnival trades an average of 3.3 million shares per day with a market cap of $30 billion. 52 Week High: $39.40 Beta: 1.42 Price to Book: 1.21 Shares are now starting to break-out higher after a considerable consolidation period. With a price-to-earnings multiple above 20, I would wait for a pullback in price before moving forward. The mean price target is $40.85, leaving plenty of room to grow from here. Cruise lines are floating casinos that for the most part, don't exploit the revenue from gaming nearly as much as I believe they can. The positive is that Carnival has considerable potential to grow revenue and earnings (especially in gaming). As the cruise industry gains understanding in gaming, profits and dividends should follow. The potential leaves Carnival in a prime position for continued share appreciation.