Buying Carnival shares and getting onboard credit

[timetravler]

Two years ago the stock was $46 a share. Now it's $36. If you purchased 100shares in Dec 2010 you're down $1000 right now. Stock is never a sure thing.

 

The dividends are a sure thing as are the OBC's but if in the last two years you haven't' taken four 14 day cruises or ten 7 day cruises - you have a losing investment.

Another very good point.

BTW, my financial adviser has done very well for me and I will keep him.

[swedish weave]

Two years ago the stock was $46 a share. Now it's $36. If you purchased 100shares in Dec 2010 you're down $1000 right now. Stock is never a sure thing.

 

The dividends are a sure thing as are the OBC's but if in the last two years you haven't' taken four 14 day cruises or ten 7 day cruises - you have a losing investment.

 

Don't overlook the dividends. They will reduce your losses by $100.00 per year.

[Texas Realtor]

Two years ago the stock was $46 a share. Now it's $36. If you purchased 100shares in Dec 2010 you're down $1000 right now. Stock is never a sure thing.

 

The dividends are a sure thing as are the OBC's but if in the last two years you haven't' taken four 14 day cruises or ten 7 day cruises - you have a losing investment.

 

 

Concordia, splendor and Triumph had a lot to do with that.

 

If you can see the future, please let me know. I think for the average investor, it is a fair investment. The dividend is a key factor as well as the growth rate of the industry. Only 20% of americans have set foot on a cruise ship and the satisfaction rate is 97%. Carnival Corp is by far the biggest player. I don't know the numbers off hand, but I think the average growth rate for the industry has been 5-10% over the last decade (correct me if I am wrong).

 

The largest obstacles for the industry are corporate taxes in US and issues like the triumph and concordia.

 

If you cruise a fair amount, it just makes the stock that much more attractive.

 

JMHO

[caribill]

Two years ago the stock was $46 a share. Now it's $36. If you purchased 100shares in Dec 2010 you're down $1000 right now. Stock is never a sure thing.

 

The dividends are a sure thing as are the OBC's but if in the last two years you haven't' taken four 14 day cruises or ten 7 day cruises - you have a losing investment.

 

And in 2008, it was below $20, so you would be up $1600 in stock value if it is at $36.

 

The dividends are not a sure thing. In 2009, no dividend was paid the entire year.

[IECalCruiser]

It probably makes more sense if you take two or more cruises (or at least one cruise of 14 days or longer) each year. We paid $33.80/share in late 2009. Since then we have received $1,000 in OBC and $290 in dividends. Not considering stock price (CCL closed at $36.51 today for a paper "gain" of $270) that gives us an annual return of about 10% which wasn't too bad.

[jamesboat]

Oh wow I had no idea.

 

Is there a timeline catch for this?

 

Ie, say I bought the 100 shares tomorrow for a March 16 cruise.

 

Would the credit apply? Or do you have to hold the stock for x amount of time?

[caribill]

Oh wow I had no idea.

 

Is there a timeline catch for this?

 

Ie, say I bought the 100 shares tomorrow for a March 16 cruise.

 

Would the credit apply? Or do you have to hold the stock for x amount of time?

 

Should send the request in by two weeks before sailing in order to have sufficient time to process. You can include a copy of the purchase confirmation as proof of ownership.

 

You are expected to hold the stock at least until you do the cruise, but they have no way to check on that.

[jamesboat]

Should send the request in by two weeks before sailing in order to have sufficient time to process. You can include a copy of the purchase confirmation as proof of ownership.

 

You are expected to hold the stock at least until you do the cruise, but they have no way to check on that.

 

Thanks.

 

Ill do a little more due diligence on the stock in the next couple of days, but it doesnt seem like a bad deal at all.

[hansi]

Should send the request in by two weeks before sailing in order to have sufficient time to process. You can include a copy of the purchase confirmation as proof of ownership.

 

You are expected to hold the stock at least until you do the cruise, but they have no way to check on that.

 

Oh yes they do!

[dorisis]

Do they let you combine with other offers?

If you have a future cruise deposit can that be combined with the Stock credit? If not maybe not a deal.

 

We had RCCL stock and used it for years but sold it when the stock recovered. They will not allow you to stack all the rewards any more on X & Royal.

If you stacked the Stock plus Future cruise deposit, Diamond balcony upgrade with a free pre paid gratuities or drink package on a discounted cruise they would be paying for you.

 

X offered a $500.00 future OBC if you paid a $500.00 deposit and booked within 60 days. Our friends did it for a B2B 35 days.

They got $1,000.00 ship board but could use nothing else with it.

 

For us, that is one reason we normally choose a Princess cruise over a Celebrity cruise.All OBCs can be combined. I think Princess usually will refund OBCs not spent.

 

~Doris~

[catlady1]

We have done very well with CCL stock. About 2 or 3 years ago it went up 5 points in one day and we sold most if it.

Also have done well with RCL. RCL was in the low 20s for a long time. Now it's around 35.

NCLH did a IPO about a month ago at $19 and now it's 31.

None of that includes the benefit of the OBC.

The cruise business is doing well. Use disasters as a buying opportunity.

Mike

[amuse1]

is it still correct that owning 100+ Carnival shares give a $ 100 onboard credit for each cruise on Princess? It would be a bargain at the moment, as the share have dropped after the Carnival ship disaster in the Gulf of Mexico.

 

Thanks

 

All is true.........Depending on the length of the cruise it could be worth up to $250 in credit..........

doesn't matter the cost of the stock.....buy 100 shs & hold. Within 30 days of sailing you must submit proof of ownership.

Amuse 1

[amuse1]

All is true.........Depending on the length of the cruise it could be worth up to $250 in credit..........

doesn't matter the cost of the stock.....buy 100 shs & hold. Within 30 days of sailing you must submit proof of ownership.

Amuse 1

Sorry I meant 90 days...........

Amuse 1

[amuse1]

Yes....you don't put money into savings and expect to 'break even'. In vesting is basically the same. You get a 'return' on your Investment just like you get interest on savings.

 

Sent from my MB520 using Tapatalk 2

 

CCL stock is an investment. It pays regular dividends plus the extra $250 dividend to help pay for cruise costs. Hopefully the stock continues to grow. I bought after the Costa sinking for @$30/share. It has lately gone to $39.......now lower after Carnival problem, but still a gain. I will not sell. I will continue to get credits & dividends & hope for growth.

Amuse 1

[iriemon]

And in 2008, it was below $20, so you would be up $1600 in stock value if it is at $36.

 

The dividends are not a sure thing. In 2009, no dividend was paid the entire year.

 

I bought 500 shares shortly after 9/11 when it was a little over $7 a share (if you remember anything to do with travel tumbled). Also bought some RCCL stock at the same time. Needless to say any on board credit I get is gravy. Stock is a gamble, you can lose or you can gain. I have had my share of both.

[Rdcruzer]

Here is what I was getting at. If you buy 100 shares of stock at $36 a share, the total cost of that purchase is $3,600. So if you cruise 2 times a year and get say $250 OBC, then that is quite a few cruises to break even on your purchase.

I am certainly NOT suggesting not to buy the stock, especially when the prices are low, but I only wanted to point out it takes awhile to break even.

Now I am not an expert at all, but am I wrong here? What am I missing?

 

I don't understand what you mean by breaking even. To break even, all you have to do is sell your stock for $36 a share (less stock sales commissions). We purchased 100 shares last August for $3300. When we take our next cruise in March, we will have received our third on board credit of $250 or a total of $750. And that along with the $75 dividend we received at the end of 2012.

 

So if we were to sell the stock today at $36 a share, that would mean we would get a total of $4425 on our investment or a 34% return. Wow. Where can you get anything like that?:p

 

So if your broker knows of a way to do better than that, I'm all ears. And as mentioned before, there is no tax due on the $750 OBC.

[lamchops]

Here is what I was getting at. If you buy 100 shares of stock at $36 a share, the total cost of that purchase is $3,600. So if you cruise 2 times a year and get say $250 OBC, then that is quite a few cruises to break even on your purchase.

I am certainly NOT suggesting not to buy the stock, especially when the prices are low, but I only wanted to point out it takes awhile to break even.

Now I am not an expert at all, but am I wrong here? What am I missing?

 

Yes you are wrong in your thinking as you will still own the stock. The stock would have to drop to $0 for you to only break even in 14 years.

If you buy only 100 shares, you will lose $100 only if the stock drops by $1.

I have known many people who have purchased the stock before a 14 day cruise to get the $250 OBC and then sell it imediately after confirming the credit. The stock would have to drop by $2.35 for them to not come out ahead.

[caribill]

Oh yes they do!

 

Oh no they don't!

[hansi]

Well, they have tightened up on it now. They told me they need a very up to date statment to show the shares are still being held.

[thinfool]

Well, they have tightened up on it now. They told me they need a very up to date statment to show the shares are still being held.

 

Please elaborate.

 

In the US, no one except myself and my brokerage has access to my holdings without legal authorization, which CCL would not have.

 

So, if I submit current proof of ownership to CCL today to get my OBC, and then sell my CCL next week, before I leave on my cruise, CCL has no way to know that.

 

Is it different in the UK?

[IECalCruiser]

Well, they have tightened up on it now. They told me they need a very up to date statment to show the shares are still being held.

The statement needs to be dated within thirty days of the date you submit your request, but that is the only requirement in the US. You can't submit your request until after final payment date.

[swedish weave]

I see that CCL stock is at $35.15 right now. Is it a good time to buy ?

[caribill]

I see that CCL stock is at $35.15 right now. Is it a good time to buy ?

 

It will fluctuate. It may go up. It may go down.

 

Just as you should book a cruise when you see an acceptable price, you should buy the stock when the price is attractive to you.

[billco]

I see that CCL stock is at $35.15 right now. Is it a good time to buy ?

As the stock has been dropping like a rock since the Triumph fiasco, i would wait a bit before buying. Like it did after Concordia, I am confident it will rise from the ashes.

[79Smiles]

I already have a cruise booked for April and it's fully paid. If I purchase stock now, will I still receive the OBC for this departure?