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RCL stock price nosedive... why?

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Looks good over the last 6 months....hard to tell about one day.  

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2 minutes ago, PTC DAWG said:

Looks good over the last 6 months....hard to tell about one day.  

true... but its larger than a normal swing... Did RCL have a bad news day? 

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20 minutes ago, ipeeinthepool said:

I think they published the reviews about the Edge.

 

LMBO - good one!

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RCL is scheduled to report earning on or about 1/29 and latest estimates -  Could be a driving force as prices usually adjust prior to the formal reporting. 

 

Based on 7 analysts' forecasts, the consensus EPS forecast for the quarter is $1.41. The reported EPS for the same quarter last year was $1.53.

Edited by Jim_Iain

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Coronavirus outbreak in China & Asia.  Has the potential to be a really big deal & RC put a lot of eggs in that basket.

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10 minutes ago, Beachin2 said:

Coronavirus outbreak in China & Asia.  Has the potential to be a really big deal & RC put a lot of eggs in that basket.

 

You are correct.  CNBC has reported on coronavirus several times today and investors are reacting by selling airlines and cruise lines.  Hopefully fears are overblown.

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37 minutes ago, Beachin2 said:

Coronavirus outbreak in China & Asia.  Has the potential to be a really big deal & RC put a lot of eggs in that basket.

Exactly this is being reported. They expect it to hit the leisure category pretty hard.

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They were downgraded today by one analyst who follows them. The analyst's 52 week target price is above where they are now by a few dollars. 

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Maybe, just maybe, the investment community sees the stock dropping and better investments out there. I've been investing in stocks for over thirty years and have done very well. There are three reasons to sell a stock 1) you feel the particular stock has peaked, 2) you feel it's going to drop, or 3) there are better investments out there. My vote is all three.

There is a growing sector of people out there, me included, that feel they are paying much more and getting less, so they are finding other options to spend their hard earned money.

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Carnival Corp stock has also dropped also not just RCL.

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11 minutes ago, jelayne said:

Carnival Corp stock has also dropped also not just RCL.

The whole sector is down plus since it had a 30% run up over the last few months.  I sold my position back in April 2018 after buying in when market turned around in 2009 area.  The news out there of Asia might/probably has an effect.  

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53 minutes ago, grandgeezer said:

Maybe, just maybe, the investment community sees the stock dropping and better investments out there. I've been investing in stocks for over thirty years and have done very well. There are three reasons to sell a stock 1) you feel the particular stock has peaked, 2) you feel it's going to drop, or 3) there are better investments out there. My vote is all three.

There is a growing sector of people out there, me included, that feel they are paying much more and getting less, so they are finding other options to spend their hard earned money.

 

Usually on a sharp drop there's news that comes with it. Your three views are valid but usually cause a steady decline. That said 4 - 5 percent drop isn't the end of the world either.

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The fear of the Coronavirus has hurt many travel stocks today. It could be a good buying opportunity.

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As a day trader,  I love it when you get good swings in a stock prices that are based on fear and rumors.  I made some good money on RCL today.   Not saying RCL is either a good position to hold or sell, as I'm a momentum trader I just search out volatile stocks with strong fundamentals.  

 

 

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1 minute ago, Justalone said:

Time to buy options?  Time to take advantage who bailed out of the stock?

Options Market is not recommended except for those that are experienced and understand the risks.   Consensus today is betting on a price below $129 for Feb 21.  I generally only use options to cover the risk of of underlying securities that I'm holding. 

 

Royal Caribbean Cruises Ltd (Symbol: RCL) options are showing a volume of 6,001 contracts thus far today. That number of contracts represents approximately 600,100 underlying shares, working out to a sizeable 47.9% of RCL's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $129 strike put option expiring February 21, 2020, with 577 contracts trading so far today, representing approximately 57,700 underlying shares of RCL.

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Jim Cramer on CNBC (bit of a blowhard but sometimes makes good points) just mentioned that SARS epidemic few years back drove Carnival stock down 28%.  Wouldn't personally consider buying RCL stock or options until coronavirus situation stabilizes.

 

Also, notice how over the past two years while the S&P produced solid gains RCL stock was actually down.  This despite all Fain's efforts adding ships and slashing expenses.  

 

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4 hours ago, Jim_Iain said:

As a day trader,  I love it when you get good swings in a stock prices that are based on fear and rumors.  I made some good money on RCL today.   Not saying RCL is either a good position to hold or sell, as I'm a momentum trader I just search out volatile stocks with strong fundamentals.  

If you don't buy options how do you make money on a stock price decline that day?

 

 

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It can hardly be called a nose dive 🙄

I own a large number of the shares for many years and gained over 500% not counting dividends. Contrary to Jim I am a long term investor. 
 

Looking at it over the years, the current drop is IMHO nothing to really worry about and not dramatic. Fluctuations always occur around quarterly earnings reports. See Jim‘s post...

 

Sometime the reason is that analysts just can’t be pleased. Other times it’s that investors are selling to take home the profits. FYI the share was around an all time high...
 

As a long term investor you invest in healthy companies so you don’t need to worry about short term volatility. 
 

 

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