Hmmm...Fain Sells 200,000 shares of RCI

[EVALUATOR]

Fain sold 200,000 of his RCI shares for $46.63 last Friday. Does he know something we don't?:rolleyes:

[ChipLondon]

It is his wifes birthday next week, or he wants a new car, boat etc. I am sure he knows the effect of selling any shares will have, so any effect would also change his other shares, therefore nothing to worry about.

[tropiclvrs]

He know LOTS of things that we don't in regards to RCI. However, it's highly unlikely that he'd be selling his shares becuase of something that he may think would drop the share price. If he did, it would be "insider trading" which is highly illegal and would be under investigation of the SEC (Securities and Exchange Commission).

 

It's possible that he exercised options that are expiring, or it might be a loan to buy more shares of the company’s stock — which would indicate a vote of confidence in the shares.

[mo&fran]

If he knows something, he will be in big trouble. Insider trading can land you in jail. Ask Martha Stewart.

[CruiseKeeper]

He just found out he can't combine his balcony discount with a shareholders discount. :rolleyes:

[marci22]

http://secwatch.com/rcl/insidertrading?companyid=31912&page=0

 

Here you can see what everyone is doing (lots of selling...)

[aurelius180]

Fain sold 200,000 of his RCI shares for $46.63 last Friday. Does he know something we don't?:rolleyes:

 

 

He knows it was trading at $46.63 and he probably owns it for far less than that. :D

[Jtd724]

yeah it went from 6 dollars last year to 46. thats over 600 percent increase. I would sell too. Gimme muh money.

[JColquhoun]

I thought Adam was CEO of RC:confused:

[glcoop]

I have to agree he is freeing up cash to buy options.

[Paul65]

Fain sold 200,000 of his RCI shares for $46.63 last Friday. Does he know something we don't?:rolleyes:

 

Yes. He knows the distribution of assets in his retirement savings portfolio. :)

[bajathree]

Notable Insider Sales:

 

1. Royal Caribbean Cruises Ltd. (RCL): $45.55

 

Chairman & CEO Richard D. Fain sold 200,000 shares of this cruise line company for $46.63, generating $9.33 million from the sale.

 

This is a significant sale with Mr. Fain selling nearly 16% of his direct holdings.

 

P/E: 19.52 Forward P/E: 11.27 Industry P/E: 20.39

P/S: 1.54 Price/Book: 1.3 EV/EBITDA: 12.74

Market Cap: $9.80B Avg. Daily Volume: 2,533,120 52 Week Range: $21.97 – $49.99

http://seekingalpha.com/article/249592-insider-buys-and-sells-jpmorgan-chase-royal-caribbean-cruises?source=yahoo

 

I also posted this last week but it didn't get much attention:

 

UPDATE 2-Royal Caribbean Q4 rev measure, outlook disappoint

http://www.reuters.com/article/2011/01/27/royalcaribbean-idUSN2610302920110127?feedType=RSS&feedName=cyclicalConsumerGoodsSector&rpc=43

[smoothy]

Actually, it looks like he sold 600,000 shares. He sold another 200,000+ last March also. Quick look at last year's circular shows Fain with over 2 million shares, even with this latest sell he's still into RCCL for a bucket of money (nevermind the options he earns as well)

 

I'm not sure how it works in the US, but my Dad was a senior exec with a Canadian bank. He had certain time windows he was allowed to sell stock within.

[glcoop]

Last March he bought 297,000 shares at $9.00 option price and sold them the same day for $42.00 a share.

[Puffinater]

Does he know something we don't?:rolleyes:

 

Probably knows how many deductions he needs to find to offset those gains.

[smoosh21]

yeah it went from 6 dollars last year to 46. thats over 600 percent increase. I would sell too. Gimme muh money.

 

I just wish I had held onto my stock longer. I sold mine back in the low $30s.

[setsail]

I have to agree he is freeing up cash to buy options.

 

And he has the buy low sell high drill down.

 

And, with gas prices very high I expect cruise stock to level off or go down.

 

So, a very good time to take profits or gain cash to buy shares at a lower price by cashing your options in. Things high level management at all companies do.

[mikenhe]

he may well be selling to settle his tax bill. not unheard of.

[BillOh]

I sold my 100 shares that I picked up when it hit $15 for the OBC on my cruise that year, I made enough from the sale to almost pay for my Allure cruise! They changed the stock benefit, so it wasn't that worthwhile.

[Mac303]

Everytime an executive of any company sells/trades stock in the company it is reported to the Federal Trade Commission.

[DanJ]

I thought Adam was CEO of RC:confused:

 

Adam is CEO of the Royal Caribbean International, the cruise line. Richard Fain is the CEO of Royal Caribbean Cruises Ltd, the parent company of the various lines under that umbrella. I think the names sound backwards myself (RCI sounds like a parent company name), but it's not my company LOL.

 

Richard probably just needed to free up cash so he can afford an Aquatheatre Suite the next time they have a concert onboard :)

[NordicPrince]

If he knows something, he will be in big trouble. Insider trading can land you in jail. Ask Martha Stewart.

 

Insider trading is a big no-no. Martha's friend from Imclone called her broker to tell her to sell some shares. For this offense she probably would have had to return her gains and get a slap on the wrist because she didn't actively solicit the information. The Imclone exec was the big offender here. They had a product that he knew was not going to get approved and that news would negatively affect the price of the shares. While saving his own neck he tried to help his friends avoid some pain.

 

But that wasn't what really got Martha into trouble. See, when the Feds asked her about the whole situation she denied any knowledge. Basically she lied about the whole thing under oath.

 

And for some reason the Feds get really upset when they get lied to. Nobody thumbs their nose at them. They take it very personally.

That was the point of no return and she was going down.

 

Now Mr. Fain doesn't strike me as a stupid man. He seems to be following the rules. As a shareholder of RCI you should be jumping up and down that Mr. Fain was able to increase the value of the corporation. I'm sure he has many more options that have been issued to him which he is holding on to.

 

However if you see an extraordinary number of executives trying to jump into the lifeboat at the same time then maybe there's something afoot that needs to be looked into. If you see an extraordinary increase in the daily volume of trades in RCI and the shares are going down significantly maybe you

should be taking some profits so you can have some cash for the weekly C & A Monday sales. Like in boxing, try to protect yourself at all times.

 

I wish I had these types of problems. I would certainly sleep better at night.

[willing292]

he just found out he can't combine his balcony discount with a shareholders discount. :rolleyes:

 

 

rof lmao

[SamFritz]

Or maybe he needed to free up some cash to pay for all those sodas he's going to be giving out to diamond members! :p

 

Or to provide chocolates for his own pillows!:p

 

Or cover the coming increase in tips! :p

 

You can take it from here.

[Paul65]

For the premium spirits he smuggles on in his rumrunner. It's not about the money, of course, he just doesn't want to have to wait for room service.