RCL Stock: Down this week

[loubetti]

With frequent talk of RCI's policies and prices, it is interesting to note that latest earnings guidance from the company is down from predictions, and as such so is the stock price. It took a big dump on Monday, and has only slightly recovered since then. What might cause this?

 

Look, I'm not bashing here, just advising of reality. I don't have a dog in this fight.

 

Is the stock a "buy" now? :confused:

 

They were at almost $80 last week, now at around $74 today.

 

Remember, they are the most highly leveraged of all the cruise lines (outstanding debt). That might not help matters.

 

Any thoughts?

[zapman]

Lou how the heck are ya,,, been a few years since i talked to you

[davy jones]

Stock prices are based on anticipation of future earnings. Lowered forecasts = lower stock price.

 

Recent corporate actions and statements would indicate that they plan to target new cruisers who may be willing to spend more for a reduced product. Only time will tell how the market responds to that strategy.

[awestover89]

Full disclosure: I owned shares in RCL before the dump on Monday and I bought more late Monday morning when it bottomed out.

 

So, obviously, for me it was a buy, I personally fully expect it to recover, but there are a lot of people who don't agree with me, and I'm no expert, I just trade occasionally using an online broker.

 

As for what caused the huge drop on Monday, Q1 earnings came out and Royal lowered their expectations for the rest of the year. They cited rising fuel costs, especially with the mandatory switch to low sulfur fuel that happened in January, and a stronger US Dollar resulting in a decrease of on board purchases from non-Americans.

 

That being said, profits are still solid, just lower than what the experts predicted. I personally see Monday as a massive over reaction, pretty common in the stock market, especially since the dot com boom and bust.

[RDC1]

Full disclosure: I owned shares in RCL before the dump on Monday and I bought more late Monday morning when it bottomed out.

 

So, obviously, for me it was a buy, I personally fully expect it to recover, but there are a lot of people who don't agree with me, and I'm no expert, I just trade occasionally using an online broker.

 

As for what caused the huge drop on Monday, Q1 earnings came out and Royal lowered their expectations for the rest of the year. They cited rising fuel costs, especially with the mandatory switch to low sulfur fuel that happened in January, and a stronger US Dollar resulting in a decrease of on board purchases from non-Americans.

 

That being said, profits are still solid, just lower than what the experts predicted. I personally see Monday as a massive over reaction, pretty common in the stock market, especially since the dot com boom and bust.

 

It was interesting in how they mention how the strong dollar impacted their revenue, but did not mention how the strong dollar had an even greater impact in reducing their expense line. Their net income was up compared to Q1 last year, but only because of reduced fuel costs and expenses. Both ticket sales and on board spending were down compared to Q1 last year.

[rimmit]

Oh wow. I hadnt checked the RCI stock price in forever, as in years. I bought a couple hundred to add to my portfolio when it was near rock bottom at about 6.50 a share just to get the stockholder benefit. I had no idea it has rebounded as much as it has. Last time I looked it was in the 50s.

[mark290]

Stock prices are based on anticipation of future earnings. Lowered forecasts = lower stock price.

 

Recent corporate actions and statements would indicate that they plan to target new cruisers who may be willing to spend more for a reduced product. Only time will tell how the market responds to that strategy.

 

If earnings were the only part of the equation it would be much easier

to know when to buy a stock and more importantly when to sell.

Emotion, among other things, is a big part of the market.

[papaflamingo]

Probably down because no one is drinking anymore due to $12 drinks. :)

[Jiffymom]

That's my thought too. They are driving us away with these silly drink prices.

I'm not a big drinker. Love sit by the pool have a few but not 6 per day what I have been told to break even on a package. Oh well I won't sell my stock but probably try another vacation idea for next year