Call from NCL re: water

[pliskin]

Your comments make me wonder why NCLH tripled Del Rio's salary yet they have NEVER paid the shareholders any dividends. Is that what companies do ??????????????

 

Yes, actually, that's what almost all companies do. And thank you for the 14 extra question marks. Most companies do not pay dividends to share holders. You are investing in the rise (or fall) of the stock value. Generally speaking, stocks that pay dividends are long established companies that slowly rise but are long past explosive growth potential. Like IBM or GE. If you had invested in NCLH when they IPOed in January of 2013 , you would have bought in at around $24 a share. It hit a high last October of $63 and is currently trading at around $42. Even at current price, you would have almost doubled your money. Most of the brokerage houses rate it as a buy. And doubling (and at one point nearly tripling) your value in 3 years is pretty damn impressive.

 

NCLH value has also been affected by reinvesting profits into new ships. Profits that will come later. So the share price has fallen recently but it is poised to rebound nicely when the ROI from all the new ships starts to come in.

 

Hopefully I have answered your question.

[Jules**]

Wow, you are angry. I am sorry this has upset you so much. What I don't think you are aware of is that corporate executives are required BY LAW to maximize revenue for the benefit of shareholders. You can make an argument that the law is bad but it is in fact a law. Some have even gone to jail over it (i.e. Enron), but there have been numerous class action lawsuits around it and executives can be held personally liable. Its called breach of fiduciary duty. The law is in place to prevent companies from making decisions that don't increase profits or decisions that lose money. Otherwise, your IRA and 401K could plummet in value which might upset you more and also cause the stock market to tumble. I'm not kidding. That's why the law is in place. So when people talk about corporate greed, remember that they are legally obligated to do so.

 

Ever gotten a soda at a fast food place? Well it might surprise you to know that the soda costs less than 1/2 cent per ounce and the cup, lid and straw cost a few cents when buying in bulk. So a 16 ounce soda costs them about 12 cents to provide yet they charge you $1.59. Now you know why all fast food places offer "meals." Because the profit margin on fries and a drink are way better than the profit from the sandwich itself. Point being, all companies are out to make a profit. That's what companies do.

 

The real question is do you feel that you are getting a good vacation value for your money? I do, that's why I go on cruises. If you don't, don't go on cruises. But water shouldn't be the breaking point between a good value and not a good value.

 

I truly hope you can let this go and have a great time on your vacation in a couple of weeks! You deserve a relaxing good time! And I am going to send you a hug.

 

Just when you thought the justifications couldn't get any sillier....

[Sissaaaaaa]

Yes, actually, that's what almost all companies do. And thank you for the 14 extra question marks. Most companies do not pay dividends to share holders. You are investing in the rise (or fall) of the stock value. Generally speaking, stocks that pay dividends are long established companies that slowly rise but are long past explosive growth potential. Like IBM or GE. If you had invested in NCLH when they IPOed in January of 2013 , you would have bought in at around $24 a share. It hit a high last October of $63 and is currently trading at around $42. Even at current price, you would have almost doubled your money. Most of the brokerage houses rate it as a buy. And doubling (and at one point nearly tripling) your value in 3 years is pretty damn impressive.

 

NCLH value has also been affected by reinvesting profits into new ships. Profits that will come later. So the share price has fallen recently but it is poised to rebound nicely when the ROI from all the new ships starts to come in.

 

Hopefully I have answered your question.

 

I don't know about other companies, but I have gotten dividends from Disney since I bought stock in 2004.

[jm485]

Personally, this change has annoyed me more than made me angry. There are plenty of things in life that have facets that are annoying but also have positives to offset the annoying stuff. In the end, it's about balance and whether the positives offset (or preferably more than offset) any negatives.

 

To me, the "negative" here isn't just that we can't bring water on board with us. It's the way the change was implemented -- on short notice -- and the "corporate line" NCL has taken ("it's in line with industry security standards" and "we have competitive beverage packages"). These things make me concerned about what else might change in the future that would be a more annoying annoyance, if you will. While I am willing to concede that the security issue is probably true at least in part, the second is true only if there's a definition of "competitive" that means "most expensive" AND "least inclusive."

 

In the end, whether this change will be positive from a shareholder perspective isn't clear. There's the direct financial effect, that can probably be fairly easily measured: savings from reduced handling of the brought-on-board beverages, good will because boarding and luggage delivery times are improved, increased sales of soda and water on-board.

 

The offsetting factors are a bit more difficult to measure, but if there's a decline in future bookings from existing passengers (over this change itself, or over this change as one of a series of changes that resulted in people not rebooking), the cost of attracting new cruisers has to be considered. NCL's ships are not all running at capacity with waiting lists, so someone will have to fill the cabins left empty because of this change. Increased ad costs, incentives to TAs, more "free at sea" offers ... all of that has a cost, too. You might also see declines in spending on other on-board items. I think it's too soon to tell whether this will be a clear-cut "winner" for shareholders.

 

We're in a suite, and yes, I'm looking forward to the coffee maker. And the French press coffee at breakfast -- I've never figured out how to clean one of those without getting the grounds everywhere, so French press with someone else doing clean-up is a double treat. I bring up the coffee more to point out the lack of inclusions in NCL's beverage package generally than because of how it will affect me personally.

[Sissaaaaaa]

I am still trying to figure out what that policy change would need to be for me to be this outraged.

 

Communal showers might do it for me.

[pliskin]

I don't know about other companies, but I have gotten dividends from Disney since I bought stock in 2004.

 

Disney has been around since 1978 and is a mega-huge company that has ties into everything like ESPN, ABC, etc etc. They would be the type of company that would pay dividends. They have no ability to have dramatic growth to increase share value if only for the reason that they are so huge it would take a multi-billion dollar profit increase to make a major upward dent. If they didn't pay dividends, people wouldn't buy the stock. Hence the incentive of dividends.

 

NCLH has been around since 2013. So its in a completely different place in its existence. And it is a generalization. There are exceptions but they are usually tied to growth potential.

 

It's the way the change was implemented

 

I don't disagree with you JM. It does seem like they contacted some folks though. Not sure why they didn't contact all. I wasn't contacted but my next sailing isn't until November.

[Sissaaaaaa]

Disney has been around since 1978 and is a mega-huge company that has ties into everything like ESPN, ABC, etc etc. They would be the type of company that would pay dividends. They have no ability to have dramatic growth to increase share value if only for the reason that they are so huge it would take a multi-billion dollar profit increase to make a major upward dent. If they didn't pay dividends, people wouldn't buy the stock. Hence the incentive of dividends.

 

NCLH has been around since 2013. So its in a completely different place in its existence. And it is a generalization. There are exceptions but they are usually tied to growth potential.

 

 

Makes complete sense, thanks!

[pliskin]

Makes complete sense, thanks!

 

You are very welcome. I also saw your earlier comment about communal showers. Don't sail the Epic! The bathrooms are really weird. :D

[Warm Breezes]

Oh, how I wish I could disagree - your point has been in the back of my mind, but even so there are ways and means to maximise profits. Rather than charge so much for staples like water, why not add something to some of the luxuries? I know: you can't please everyone... :)

 

No, it's not going to spoil our cruise either - still very much looking forward to our first experience of life on the ocean wave. :)

 

IMHO bottled water is a luxury. Water is a staple and it is free all over the ship.

[skeetns]

I wouldn't drink the water from my bathroom tap......just came back June 13 from the Spirit.....because our sink faucet had brown water coming out. Very appetizing I must say......

Glad we had Brita bottles with filter.

 

We were on the Spirit last fall and our bathroom sink also provided water that had a nasty colour to it. We always stopped at one of the bars on the way back to the cabin for the night and got a couple glasses of ice water from the bartender.

 

The water from the bars looked fine but our cabin bathroom sink must have been getting water from a different tank. Perhaps it was only from the hot water but it had a brownish / green tint to it.

[hpecorari]

.

 

PS: If you want specialty coffee, get a suite. They have these amazing Lavazza coffee machines that make all sorts of specialty coffees for free.

 

Not sure when the last time you cruised was… But FYI –

They are in the process of switching out on the Lavazza coffee machines with Nespresso coffee machines. I know for a fact that the Gem and the Escape already have these new coffee machines and possibly the pearl as well as other ships. These machines ONLY make espresso. They no longer make cappuccino etc. you must now purchase tha you must now purchase specialty coffee even if in the Haven and/or suite

 

Harriet

[don't-use-real-name]

We were on the Spirit last fall and our bathroom sink also provided water that had a nasty colour to it. We always stopped at one of the bars on the way back to the cabin for the night and got a couple glasses of ice water from the bartender.

 

The water from the bars looked fine but our cabin bathroom sink must have been getting water from a different tank. Perhaps it was only from the hot water but it had a brownish / green tint to it.

 

Was it like this all the time ?

Was your cabin location at the end of a passageway/corridor ?

Your cabin steward should know what's happening ?

Others cabins/passengers in the same vicinity reporting the same problem ?

Any thought to let the water run clearing the color contamination (tank sedimentation) ?

Shower have the same problem ?

Try running the shower and sink water till the problem clears ?

Heck it is NCLs water and their problem but it should be reported and you should not have to live with it?

If NCL can't provide a solution complimentary bottles of water would be in order (or something stronger) ?

Edited July 18, 2016 by don't-use-real-name

[swedish weave]

Yes, actually, that's what almost all companies do. And thank you for the 14 extra question marks. Most companies do not pay dividends to share holders. You are investing in the rise (or fall) of the stock value. Generally speaking, stocks that pay dividends are long established companies that slowly rise but are long past explosive growth potential. Like IBM or GE. If you had invested in NCLH when they IPOed in January of 2013 , you would have bought in at around $24 a share. It hit a high last October of $63 and is currently trading at around $42. Even at current price, you would have almost doubled your money. Most of the brokerage houses rate it as a buy. And doubling (and at one point nearly tripling) your value in 3 years is pretty damn impressive.

 

NCLH value has also been affected by reinvesting profits into new ships. Profits that will come later. So the share price has fallen recently but it is poised to rebound nicely when the ROI from all the new ships starts to come in.

 

Hopefully I have answered your question.

 

Sorry, but you have evaded my question. You can put a spin on anything, but if a company can triple the CEO's salary, they should share some of their largesse with the shareholders.

[swedish weave]

Not sure when the last time you cruised was… But FYI –

They are in the process of switching out on the Lavazza coffee machines with Nespresso coffee machines. I know for a fact that the Gem and the Escape already have these new coffee machines and possibly the pearl as well as other ships. These machines ONLY make espresso. They no longer make cappuccino etc. you must now purchase tha you must now purchase specialty coffee even if in the Haven and/or suite

 

Harriet

 

If you like cappuccino, try the Superior powder mix sold by Farmer Bros in 2 lb bags - Several flavors and you just mix it with hot water. It is very good !!!!

[mking8288]

We were on the Spirit last fall and our bathroom sink also provided water that had a nasty colour to it ... must have been getting water from a different tank. Perhaps it was only from the hot water but it had a brownish / green tint to it.

 

It's supposed to be from the same main tank(s) - monitored 24/7 - but possibly some sort of failure in the pressurized flow lines upstream that split or branch out to your stateroom and your neighbors nearby - whatever backflow prevention systems or devices in place didn't work as per plumbing codes and/or the filtration systems. I am sure the experts on water systems will be along to explain it.

 

It happened to us a few years ago on the Jewel, so long as it wasn't cross-contaminated with the waste water lines. Guest services told our neighbors next door as they already called down, that they're aware and working on resolving it - to open the facuet & let it run for a full minute before use. The shower was the same - and, didn't use it to wash up until much later ... no, didn't feel like being itchy while sleeping.

 

And, it's lead-free, unlike these - supposingly from Flint, MI - that got the FBI involved to investigate ... http://www.gannett-cdn.com/-mm-/d698c14bcc51073fc0d02623506ed66c275ee7c8/c=243-212-2131-1631&r=x404&c=534x401/local/-/media/2016/02/02/DetroitFreePress/DetroitFreePress/635900341148384272-012215-flint-water-issues-rg-01.jpg

 

Perhaps, should be ask questions from those who continued to report or noticed sewage odors on recent sailings on one of the other NCL ship - to read about their experiences.

http://s1.reutersmedia.net/resources/r/?m=02&d=20120306&t=2&i=579039416&w=644&fh=&fw=&ll=&pl=&sq=&r=CDEE8250PH100

[Annmeat]

Not sure when the last time you cruised was… But FYI –

They are in the process of switching out on the Lavazza coffee machines with Nespresso coffee machines. I know for a fact that the Gem and the Escape already have these new coffee machines and possibly the pearl as well as other ships. These machines ONLY make espresso. They no longer make cappuccino etc. you must now purchase tha you must now purchase specialty coffee even if in the Haven and/or suite

 

Harriet

 

Some Nespresso models make full size coffee and have a frothier attachment as well. I was at Bloomingdales yesterday in King of Prussia and they had a whole Nespresso department. It was strange to say the least. I was surprised at all the options available .

 

We have a Nespresso at home and I swear that all the flavor taste the same to me,.

 

We could never get the Lavazza machine do make anything but coffee anyway.

Edited July 18, 2016 by Annmeat

[sometimes sailor]

. . . . I've received more feedback from face to face discussions than ever from an email or phone call.

 

For what it is worth I believe Carnival went to this policy about three months ago and I'm sure NCL was just watching for the severity of the fall out.

 

Happy Sailing.

[JohnnyK!]

I had s lot of fun enjoying these posts. As the world is today could this also be a security situation?

 

 

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[AquaMarineFerret]

Communal showers might do it for me.

 

Are you really, really sure you want to go there? :eek:

[GeezerCouple]

Some Nespresso models make full size coffee and have a frothier attachment as well. I was at Bloomingdales yesterday in King of Prussia and they had a whole Nespresso department. It was strange to say the least. I was surprised at all the options available .

 

We have a Nespresso at home and I swear that all the flavor taste the same to me,.

 

We could never get the Lavazza machine do make anything but coffee anyway.

 

You might have a Nespresso that has a "frothier attachment" (or have seen one somewhere), but that's irrelevant unless that is the model that NCL has placed in the suites in place of the Lavazza machines.

 

On our cruise last month, the Nespresso machines in the top suite absolutely did not have anything other than a place to drop the capsule into, and a single spout for the flavored liquid (coffee or tea) to drip out of.

 

There was no way to make anything with any type off milk/cream, other than to add it from the *separate* tiny capsule of creamer, or to request a little pitcher of hot or cold milk or cream.

 

If you couldn't get the NCL suite Lavazzo machine to work in the past, you should have asked your Butler to show you, or simply to do it for you if the machine continued to be difficult to operate.

(Or perhaps request a replacement machine, if that one was wasn't working properly?)

[hpecorari]

Some Nespresso models make full size coffee and have a frothier attachment as well. I was at Bloomingdales yesterday in King of Prussia and they had a whole Nespresso department. It was strange to say the least. I was surprised at all the options available .

 

We have a Nespresso at home and I swear that all the flavor taste the same to me,.

 

We could never get the Lavazza machine do make anything but coffee anyway.

 

True, some of the Nespresso machines do make cappuccino. However the new machines NCL is using do not.

 

Harriet

[Annmeat]

You might have a Nespresso that has a "frothier attachment" (or have seen one somewhere), but that's irrelevant unless that is the model that NCL has placed in the suites in place of the Lavazza machines.

 

On our cruise last month, the Nespresso machines in the top suite absolutely did not have anything other than a place to drop the capsule into, and a single spout for the flavored liquid (coffee or tea) to drip out of.

 

There was no way to make anything with any type off milk/cream, other than to add it from the *separate* tiny capsule of creamer, or to request a little pitcher of hot or cold milk or cream.

 

If you couldn't get the NCL suite Lavazzo machine to work in the past, you should have asked your Butler to show you, or simply to do it for you if the machine continued to be difficult to operate.

(Or perhaps request a replacement machine, if that one was wasn't working properly?)

Didn't need anything but coffee .

I wonder why they switched to espresso only. Not everyone is a fan. More work to have the butler bring the French press pots than to have a cup ready to be made in the room via machine.

 

I only have a basic Nespresso, saw the fancy ones in the store. I'm a French press gal myself.

[Annmeat]

True, some of the Nespresso machines do make cappuccino. However the new machines NCL is using do not.

 

Harriet

 

This seems like a very silly switch to me. I also don't understand the Nespresso raves going on out there. I find it meh ..but my machine was a gift from hubs and he and one daughter enjoy it.

[sjbdtz]

What I don't think you are aware of is that corporate executives are required BY LAW to maximize revenue for the benefit of shareholders. The law is in place to prevent companies from making decisions that don't increase profits or decisions that lose money.

 

What law is this, exactly? I'm afraid the CEO's of almost every Fortune 500 company will be heading directly to jail.

 

Companies invest money in research, personnel, morale, recruiting, and other areas which are all cost centers.

 

Companies further are not obligated to make a profit. Look at the first 5 years of Google, Amazon, etc.

 

According to your logic every CEO who ever gave an employee a raise, would be subject to prison.

 

Here's a New York Times article also stating it's utterly false, the claim you made: http://www.nytimes.com/roomfordebate/2015/04/16/what-are-corporations-obligations-to-shareholders/corporations-dont-have-to-maximize-profits

 

 

 

Stephen

 

 

.

[jm485]

Officers and board members have a fiduciary duty to act in the best interests of the shareholders. That doesn't necessarily mean maximizing profits in the short-term, as you point out. Sometimes you've got to spend money today to make more in the long run.

 

 

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