A question about 100 shares CCL

[Putterdude]

I retired at 59 and now have had some 10.5 years of it. Frankly, I have found it to be a very noble pursuit......but I still miss those long weekends, I seem to have to golf every holiday Monday, it never changes.;)

 

 

As for my CCL stock at the time of my initial purchase our IA advised against it so I purchased it in an online account only just recently rolling it into one of our managed portfolios....our IA now says "you have done rather well with that stock, haven't you"....soon he will want to take all the credit it.:)

[shepp]

The one thing folks are leaving out is the possible value of alternative investments.

 

I had the bad luck to buy in early 2011 near the 5-year high, at 46.5, because I was planning to go on an Alaska cruise and analysts were predicting a rise to 57. Even with reinvested dividends (which are taxable), I'm down by $500 in paper losses. Since then, I've sailed eight times, and more than burned that off in OBCs. But the market since then has skyrocketed, while CCL has plunged, swooned, and languished. Had I instead that day put that $4650 into a low-risk dividend-paying mutual fund I owned, I'd be up by $3000, which means that CCL turned out to be - even taking into account the OBCs - a mediocre investment at best. Sure, the OBCs are real money (or rather, play money negotiable only after paying real money for a cruise), while the fund gain would have been paper profits (unless I cashed out some of those shares).

 

No, I don't regret buying CCL, since I've cruised a lot in the meantime, often longer cruises, and the stock makes up a small fraction of our portfolio which we will most likely never need. But is a stock whose share price has declined around 20% over the past decade while the Dow has climbed almost 70% a can't-lose investment? Well....

Edited September 24, 2014 by shepp

[paul929207]

Just bought 100 shares today and here's to hoping that I'm saying the same thing in about 5 - 7 years! Yeeeeeeeeeehaa! :D

Be sure to buy lots of FCCs. You can get the FCC and Shareholder OBCs. You can also add in the Military OBC if you are eligible and eventually the Loyalty OBC.

[geoherb]

I'm already regretting not buying two FCCs for each of us last month on the CB. I only bought one apiece. And now one of the cruise possibilities for us this December is doing back-to-back cruises on the CB. We did b2b on the Ruby last December, so I should have known better. At least with the short cruises we don't miss out on a whole lot of onboard credit. And I won't book whatever we eventually decide to do until after the final payment date, so the reduced deposit doesn't matter.

[Putterdude]

Yes, we need to reload our FCCs, we haven't sailed with Princess for a year and with 5 cruises booked we are now desperately in need of some dry powder.

[Bethcb]

We have been CCL shareholders for 4 years and have almost paid for the price of the stock in OBCs. On our last cruise, we were taking my daughter and BF, and Princess actually recommended that we book my husband and I in 2 different cabins and put daughter and BF in respective cabins with us. We each got CCL shareholder credit and since we are elite got the extra $25 per cabin and the bar set up. Once on the ship, we just went to the desk and changed the key cards. We did not ask to do this, but Princess told us we could. It felt like cheating, but I suppose it wasn't. Doing this again on our cruise in December.

Edited September 24, 2014 by Bethcb

[Thrak]

We have been CCL shareholders for 4 years and have almost paid for the price of the stock in OBCs. On our last cruise, we were taking my daughter and BF, and Princess actually recommended that we book my husband and I in 2 different cabins and put daughter and BF in respective cabins with us. We each got CCL shareholder credit and since we are elite got the extra $25 per cabin and the bar set up. Once on the ship, we just went to the desk and changed the key cards. We did not ask to do this, but Princess told us we could. It felt like cheating, but I suppose it wasn't. Doing this again on our cruise in December.

 

Did you each get credit for a single holding of 100 shares or do you hold 200 or more shares?

[LeeW]

Some companies will allow you to buy stock through their 401k plans, which I did a few years back. So retirement money I wasn't going to spend anyway went to the CCL stock purchase. Around $750 in OBC for 4 years and stock dividends on top of that going back into the retirement plan (dividend reinvestment). Certainly did better than other investments in the 401k.

[spunks]

I'm already regretting not buying two FCCs for each of us last month on the CB. I only bought one apiece. And now one of the cruise possibilities for us this December is doing back-to-back cruises on the CB. We did b2b on the Ruby last December, so I should have known better. At least with the short cruises we don't miss out on a whole lot of onboard credit. And I won't book whatever we eventually decide to do until after the final payment date, so the reduced deposit doesn't matter.

 

I've recently read where you can purchase FCC on land if you have cruised within the last 6 months....you might call Princess and ask.....as far as the stock goes it doesn't matter if it goes up or down....you're only buying 100 shares (we should have bought 10K) and for the purpose of OBC.....if you only cruise once it might not be a good buy....but, if you cruise several, or even a couple of times a year, then it's a no brainer.....our stock was "paid" for a long time ago with OBC AND even though the dividends are small they are welcomed......Annie

[Bethcb]

We have 100 shares and its a joint account.

[shepp]

If you redid your calculations based on sailing only Carnival brands and accumulating at least 40 days at sea per year on them, you may find that your calculus would change. Take a look at it over ten years with more than a grand per year on tax free on board credit.......along with the buck per share dividend (bug dust but nonetheless part of the equation) and you might reach a different conclusion.

 

Just a point of clarification, since we're calculating. To get that theoretical "grand a year," you'd have to sail 4 times a year on two-week-or-longer cruises, ten times a year on shorter cruises, or take twenty cruises under a week. No matter how you slice it, that means a minimum of two months of cruising every year (and not on very long cruises, since the ceiling is reached on 14 day sailings).

 

Yes, some folks here do cruise that much in a year, every year. But certainly far from all of us. This year, for instance, I got $200 in OBCs, last year $500. The year before that, I spent 51 days onboard, got $600 stockholder credit. Not chickenfeed, but not "more than a grand," either.

Edited September 24, 2014 by shepp

[ltcal94]

My current planning will get me between 250 to 500 in OBC per year (tax free) , plus $100 per year in dividends. So I am getting about >10% per year return. I am happy with that. In fact I have gotten a large part of what I invested back already.

 

 

Sent from my iPad using Cruise Critic Forums mobile app

[shepp]

My current planning will get me between 250 to 500 in OBC per year (tax free) , plus $100 per year in dividends. So I am getting about >10% per year return. I am happy with that. In fact I have gotten a large part of what I invested back already.

 

Sigh. Once again, you're getting 10% income from an investment, and if you're happy, great. But that's not the same as "return on investment." If you buy 100 shares of the stock in January, you then get $250 in OBC and $100 in dividends, but the share price drops by $4 over the year, which has certainly happened before (over 2011, it dropped $13 per share), your actual return on investment is a negative.

 

Now, if you like me figure you're never ever going to sell the stock, share price is essentially irrelevant. But both income and principal are figured into the rate of return on any investment.

[ltcal94]

Sigh. Once again, you're getting 10% income from an investment, and if you're happy, great. But that's not the same as "return on investment." If you buy 100 shares of the stock in January, you then get $250 in OBC and $100 in dividends, but the share price drops by $4 over the year, which has certainly happened before (over 2011, it dropped $13 per share), your actual return on investment is a negative.

 

 

 

Now, if you like me figure you're never ever going to sell the stock, share price is essentially irrelevant. But both income and principal are figured into the rate of return on any investment.

 

 

Exactly. If I sell at all , I do not plan on selling until I have recouped between dividends and OBC at least what originally put in . BTW for what it's worth , I never meant ROI.

 

 

Sent from my iPad using Cruise Critic Forums mobile app

Edited September 24, 2014 by ltcal94

[paul929207]

Sigh. Once again, you're getting 10% income from an investment, and if you're happy, great. But that's not the same as "return on investment." If you buy 100 shares of the stock in January, you then get $250 in OBC and $100 in dividends, but the share price drops by $4 over the year, which has certainly happened before (over 2011, it dropped $13 per share), your actual return on investment is a negative.

 

Now, if you like me figure you're never ever going to sell the stock, share price is essentially irrelevant. But both income and principal are figured into the rate of return on any investment.

Yes, the price change will affect or quite likely drive the return. We can only guess how much Carnival Corp or any other stock will go up or down over time.

 

We cruise a lot by most standards. So in the 5+ years we have held Carnival Corp, we have gotten over $4,000 in OBC, $500 in dividends. So we have gotten about 175 percent between the OBC and the dividends and we still have the stock. If Carnival Corp goes bankrupt today, we still have a 75 percent gain over the last 5 years. I realize that would not be great in the bull market we have enjoyed, but it is still a nice safety net

[Turbofun]

Some are active investors and calculate, others passive investors and happy with whatever benefits those 100 shares provide.

Each to their own way is how I consider it.

Yes, we have 100 shares.

[ltcal94]

Some are active investors and calculate, others passive investors and happy with whatever benefits those 100 shares provide.

Each to their own way is how I consider it.

Yes, we have 100 shares.

 

 

Very well said. :)

 

 

Sent from my iPad using Cruise Critic Forums mobile app

Edited September 24, 2014 by ltcal94

[Skai]

OP, did you hold off on purchasing the shares?

 

The stock has recently plunged (-12%) from its intraday high of $42.31 on Sep 24th to today's close of $37.34 -- Or a difference of nearly $500 in total share value for a 100 shares.

 

Of course it's one of a few stocks that have taken a bit of a dive recently.;)

[aikensbest]

I purchased my 100 shares over 6 years ago at 34.18. Since then 8 cruises at $100 per cruise and the price still around $37 . I sure wouldn't worry about current price...buy when you are ready to spend the $3000. Any stock goes up and down but I think with all the cruising today it is still a darn good deal

[michelle.zhang.90]

OP, did you hold off on purchasing the shares?

 

 

 

The stock has recently plunged (-12%) from its intraday high of $42.31 on Sep 24th to today's close of $37.34 -- Or a difference of nearly $500 in total share value for a 100 shares.

 

 

 

Of course it's one of a few stocks that have taken a bit of a dive recently.;)

 

 

 

Thank you for the info! I decided to hold on to it consider I will only get $50 OBC it's a big investment. I will check the stock tomorrow to see the trend again. If it's. Good investment I can just buy and sell. Thank you again!

 

 

Sent from my iPhone using Tapatalk

[Mingus]

I purchased my 100 shares over 6 years ago at 34.18. Since then 8 cruises at $100 per cruise and the price still around $37 . I sure wouldn't worry about current price...buy when you are ready to spend the $3000. Any stock goes up and down but I think with all the cruising today it is still a darn good deal

 

My CCL stock has also provided a great return with all the shareholder OBC.

Your comment "any stock goes up and down" reminded me of an amazing cruise line stock ROI.

RCL (Royal Caribbean) stock was at $42, Dec 2007. They were in the process of building the Oasis, but had a $1B financing problem.

This dropped their share price to $6 by Feb 2009.

Today it's at $62 :eek:.....should have bought more :(

[shepp]

I purchased my 100 shares over 6 years ago at 34.18. Since then 8 cruises at $100 per cruise and the price still around $37 . I sure wouldn't worry about current price...buy when you are ready to spend the $3000. Any stock goes up and down but I think with all the cruising today it is still a darn good deal

 

Sure, but some stocks do better than others. If the net value of your investment holdings doesn't matter to you, then all's well. But CCL has thoroughly underperformed the market since at least 2010. And sure, people are still cruising, but Royal Caribbean stock has massively outperformed CCL in that time.

 

Today, my CCL stock dropped like a stone, falling much further than any of my other investments (all of which are, granted, mutual funds, including some fairly risky ones.)

 

If you think all that plus OBCs that are now non-refundable make ownership a "darn good deal," I guess you're entitled.

[shepp]

My CCL stock has also provided a great return with all the shareholder OBC.(

 

OK, but just for rough comparison, if aikensbest had bought the broad-based Vanguard Index 500 Fund 6 years ago instead of CCL, his money would have nearly tripled instead of having returned what his Carnival stock did, which I figure is something like 35 or 40% in total returns. Plus, most of that gain was dependent on his spending money to go cruising so he could get that 800 dollars in OBCs. And now that shareholder OBCs are non-refundable, future OBC returns either go to gratuities or have to be spent while onboard on overpriced excursions, pricey cocktails, or bingo cards to be worth anything at all. If he'd held onto the Vanguard Fund till today, he could have sold enough shares this afternoon (down 1.5% at closing compared to CCL's 5.5% loss) to get $7000 in non-play-money to spend on anything he wanted to anytime he wanted to…and still ended up with the same $3700 in the market he has now.

 

It's not that I regret buying CCL, but I'm certainly glad most of my investments, adjusted for risk, have done considerably better. I know that hindsight is 20/20, but comparatively speaking, maybe CCL was not the best way for aikensbest to have invested that cash?

Edited October 8, 2014 by shepp

[swedish weave]

Market experts amuse me. Their projections are akin to those who say the ocean is drying up when the tide goes out !!!!

[paul929207]

Market experts amuse me. Their projections are akin to those who say the ocean is drying up when the tide goes out !!!!

Got that right.

 

I bought CCL for the OBC. The dividends and any capital appreciation are nice extra. I paid about $26 per share 5 years ago. I have gotten over $4000 in OBC, so I am thrilled.