RCL Stock

[travelhound]

1 hour ago, taglovestocruise said:

A little tidbit today from Motley Fool.

 

It's quite possible that 2021 is a bull market for cruise line stocks, even if the general market doesn't play along. I still rank the three stocks as Royal Caribbean first, Carnival second, and Norwegian Cruise Line third, but all three will outperform the overall market if the cruise industry recovers in the year ahead.  

I think the big three will recover, but some smaller lines will not.  The big three may even benefit from some consolidation in the industry 🙂

[Formula280SS]

1 hour ago, taglovestocruise said:

A little tidbit today from Motley Fool.

 

It's quite possible that 2021 is a bull market for cruise line stocks, even if the general market doesn't play along. I still rank the three stocks as Royal Caribbean first, Carnival second, and Norwegian Cruise Line third, but all three will outperform the overall market if the cruise industry recovers in the year ahead.  

 

IMO, Motley Fool is appropriately named in this instance.  😲

[ShmuelCharlie]

On 2/26/2020 at 1:44 PM, heidikay said:

Anybody watching the price drop?  Oh my I wonder it where it finish.  It is now at 82.28.

The share price is now around 71 bucks, down from over 83. Buy more shares on the dips if you like the company. 

[Biker19]

2 hours ago, ShmuelCharlie said:

The share price is now around 71 bucks, down from over 83. Buy more shares on the dips if you like the company. 

The chances of a meaningful dip are probably a bit less now than back in February.

[Dennis#1]

2 hours ago, ShmuelCharlie said:

The share price is now around 71 bucks, down from over 83. Buy more shares on the dips if you like the company. 

I feel the stock price of $71 is still over priced.

[grandgeezer]

All the great news about the vaccine trial success and approval to be used. This is supposed to be the main savior of cruising and the stock drops? That tells you what the financial world thinks of what's going to happen in the future. 

[ShmuelCharlie]

On 2/26/2020 at 5:52 PM, taglovestocruise said:

We were on Radiance in Mexico in 2009. There was the captains get together in the back of the ship in the club area. End of the talk the captain said in all seriousness, our stock is cheap, buy all you can afford and watch it grow.  

Oh yeah, right. Didn't Enron management say the same thing back in the early 00s to their employees? Then look what happened: the execs started selling their shares, but the rank-and-file couldn't sell their shares because they been vested in their employee stock option plan as part of their retirement program. Then somebody told the auditing firm to shred documents and down went both ships: Enron and the auditing firm (Arthur Anderson). Thousands of employees lost their shares and jobs. Thousands of Enron investors lost money in this company.

 

Bottom line: don't listen to backstabbing cruise line employees like ship captains. Buy the stock because you like the company and you know what how it makes its money: it sells cruise experiences. IOW, I follow the Peter Lynch method of buying companies' shares: Buy what you know and you can illustrate what the company does with a crayon.  

 

I buy my stock shares using dollar-cost averaging so that I don't time the market and can compound the returns using reinvested dividends. That's how I grew my RCI shares but getting access to the OBC is a PITA. That's why I don't bother with that issue. 

[Etta1213]

12 hours ago, taglovestocruise said:

A little tidbit today from Motley Fool.

 

It's quite possible that 2021 is a bull market for cruise line stocks, even if the general market doesn't play along. I still rank the three stocks as Royal Caribbean first, Carnival second, and Norwegian Cruise Line third, but all three will outperform the overall market if the cruise industry recovers in the year ahead.  

Boy, I hope it happens! 

[livingonthebeach]

Yet some analysts are saying the cruise industry might not be back to full profitability until 2030. Due to the increase in costs and decrease in revenue, they predict an increase in fares. While there are people who would cruise with the new protocols, not many are willing to pay higher prices.

 

The price benefit that the cruise industry has historically provided is no longer as competitive and there are also many alternative lower cost travel options competing for the traveller.  It's possible we won't see stock prices back to their historical highs until the cruise lines are operating at full profitability. 

[Ourusualbeach]

4 hours ago, ShmuelCharlie said:

but getting access to the OBC is a PITA. That's why I don't bother with that issue

They changed the rules so that cruises booked after June 2019 are now eligible to receive the shareholders benefit even if they have other  discounts or OBC applied.  There are only a couple of rates (TA and inter line) that are not combinable with the shareholders credit.  
 

They  have also gone a step further in that they will now apply it to any booking you have regardless of how far in the future it is.  I have had it applied to my 2022 bookings. 

[radarcruiser]

5 hours ago, ShmuelCharlie said:

That's how I grew my RCI shares but getting access to the OBC is a PITA. That's why I don't bother with that issue. 

I found it quite easy to get the OBC.  I used it a couple of times before the shutdown and had it already approved for three cruises this year that got cancelled.  I just sent emails and they usually processed it in a couple of weeks.  From the investor website:

 

Provide your name, address, confirmation number, ship and sailing date along with a copy of your shareholder proxy card, a current (60-90 days) brokerage statement or a current (30-60 days) trade confirmation or a letter from your broker on broker related letterhead showing proof of share ownership in Royal Caribbean Group along with your sailing date, name of vessel and reservation/booking number.  You can either: mail the documents to Royal Caribbean Group, Investor Relations, 1050 Caribbean Way, Miami, Florida  33132-2096, fax the documents to (305) 373-6699 or email jpeg/pdf images of all required documents to shareholderbenefit@rccl.com. 

[Ocean Boy]

43 minutes ago, Ourusualbeach said:

 

They  have also gone a step further in that they will now apply it to any booking you have regardless of how far in the future it is.  I have had it applied to my 2022 bookings. 

Same here.

[Seville2Cabo]

7 hours ago, ShmuelCharlie said:

That's how I grew my RCI shares but getting access to the OBC is a PITA. That's why I don't bother with that issue

I just got OBC for April 22 and August 22 cruises. Took less then 5 minutes to send 2 emails. Received confirmations the next day. 

[firefly333]

19 hours ago, taglovestocruise said:

A little tidbit today from Motley Fool.

 

It's quite possible that 2021 is a bull market for cruise line stocks, even if the general market doesn't play along. I still rank the three stocks as Royal Caribbean first, Carnival second, and Norwegian Cruise Line third, but all three will outperform the overall market if the cruise industry recovers in the year ahead.  

2 weeks ago didnt they also say rcl was 1/3 over priced? Though maybe the price has dropped 30% now from 83 at the time. ... not exactly long term calls, day trades only. Too soon to buy, until new support found for the price and rcl shows some sign of cruises restarting. Plenty of time to buy then.

[Biker19]

From their SEC filing today:

 

As previously disclosed, during the third quarter of 2020, we amended each of our export credit backed facility agreements (the “Export Credit Facilities”) in order to extend the period during which a breach of the financial covenants will not trigger a mandatory prepayment or default, as applicable, under each facility through and including the fourth quarter of 2021. In connection with these amendments, we agreed that certain of our subsidiaries (none of which directly own a vessel) will issue guarantees for the debt outstanding or to be outstanding under the Export Credit Facilities (the “Financial Covenant Extension Amendments”).

 

Further to and in accordance with these Financial Covenant Extension Amendments, on December 21, 2020, we entered into amendments to certain of the Export Credit Facilities guaranteed by Euler Hermes Aktiengesellschaft, including those facilities incurred or to be incurred to finance the purchase of (i) Odyssey of the Seas, Anthem of the Seas, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas for Royal Caribbean International, (ii) Celebrity Equinox, Celebrity Eclipse, Celebrity Solstice, Celebrity Reflection and Celebrity Silhouette for Celebrity Cruises and (iii) the first and second Evolution-class vessels for Silversea Cruises (collectively, the “Hermes Facilities”). These amendments provide for the issuance of the previously agreed guarantees, which in the case of the loans for the financing of Odyssey of the Seas and the first and second Evolution-class vessels will occur once the debt is drawn, in satisfaction of our obligations under the relevant Financial Covenant Extension Amendments. Following issuance, the guarantees will be released under certain circumstances as other debt is repaid or refinanced on an unsecured and unguaranteed basis. In connection with and following the issuance of the guarantees of the Hermes Facilities, the guarantor subsidiaries are restricted from issuing additional guarantees in favor of lenders (other than those lenders who are party to the Export Credit Facilities), and certain of the guarantor subsidiaries are restricted from incurring additional debt. In addition, the Hermes Facilities will benefit from guarantees to be issued by intermediary parent companies of subsidiaries that take delivery of any new vessels financed with export-credit backed financing.

[Ocean Boy]

Any cliff notes for the above.

[Ourusualbeach]

6 minutes ago, Ocean Boy said:

Any cliff notes for the above.

They owe lots of money and mortgaged everything they own.

[taglovestocruise]

Can't seem to kill the cruise line stocks..

 

Disheartened by Congress' failure to include support for the beleaguered cruise industry in its $900 billion stimulus bill passed Monday, investors sold off shares of all three major publicly traded cruise line stocks -- Royal Caribbean (NYSE:RCL), Carnival Corporation (NYSE:CCL)(NYSE:CUK), and Norwegian Cruise Line Holdings (NYSE:NCLH) -- yesterday. But today, investors are having a change of heart.

As of 11:15 a.m. EST, Royal Caribbean shares are back up 3.5% and have recovered all their losses from Tuesday (and even a bit more). Both Carnival and Norwegian Cruise are nearly back to where they were at Monday's close -- and are gaining 6.3% apiece today.

[The_Big_M]

12 hours ago, Ourusualbeach said:

They owe lots of money and mortgaged everything they own.

 

... To the extent they cannot issue any more mortages over what they hold.

[Biker19]

From their SEC filing yesterday:

 

As of December 31, 2020, Royal Caribbean Cruises Ltd. (the “Company”) has sold 13,045,927 shares of the Company’s common stock under its “at-the-market” equity offering program (the “ATM Offering”) that was announced on December 3, 2020, and exhausted the program in full. The Company received aggregate gross proceeds of $1.0 billion from the ATM Offering. As previously disclosed, the net proceeds from the ATM Offering will be used for general corporate purposes.

 

Biker, who wonders if their annual filing will disclose sale price of Empress and Majesty.

[soremekun]

5 hours ago, Biker19 said:

From their SEC filing yesterday:

 

As of December 31, 2020, Royal Caribbean Cruises Ltd. (the “Company”) has sold 13,045,927 shares of the Company’s common stock under its “at-the-market” equity offering program (the “ATM Offering”) that was announced on December 3, 2020, and exhausted the program in full. The Company received aggregate gross proceeds of $1.0 billion from the ATM Offering. As previously disclosed, the net proceeds from the ATM Offering will be used for general corporate purposes.

 

Biker, who wonders if their annual filing will disclose sale price of Empress and Majesty.

I'm keenly interested in the sale price or any other details about the transactions.

[Ourusualbeach]

1 hour ago, soremekun said:

I'm keenly interested in the sale price or any other details about the transactions.

It was all at market price. 

 

Just over 13m shares @ somewhere around $75 a share is close to 1billion 

[Biker19]

1 hour ago, Ourusualbeach said:

It was all at market price. 

 

Just over 13m shares @ somewhere around $75 a share is close to 1billion 

I think he was referring to the Empress price.

[Biker19]

From the RCG SEC filling today:

 

MIAMI, January 19, 2021 – Royal Caribbean Group (NYSE: RCL) today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions. Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. 

 

Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

 

“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period,” said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. “Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”

 

“We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are excited to partner with the Azamara team and build on their many years of success serving the brand's loyal customers. We believe Azamara will remain a top choice for discerning travelers as the cruising industry recovers over time”.

 

Azamara’s value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand. 

 

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on Royal Caribbean Group’s future financial results.

[Biker19]

Not directly stock related but:

 

Rob Zeiger, VP and global chief communications officer at Royal Caribbean Group since 2013, has left the company.

 

Zeiger shaped the group's communications strategy, served as high-level spokesman and was instrumental in many key initiatives. These included the WWF partnership, hurricane humanitarian relief, a wind-farm initiative to help offset greenhouse gas emissions, and major events like a digital rollout and numerous ship introductions.

 

Just on Wednesday, he participated in the kick-off webinar in a series on sustainable tourism sponsored by Destinations Together and the Global Sustainable Tourism Council.

 

'We thank him for his many years of service to Royal Caribbean Group,' the company said in a statement.

Wise counsel

'Rob's experience, thoughtfulness and composure were of great benefit to the industry and the company through the many challenges that arose during his tenure. His wise counsel was of particular benefit to CLIA over the last and most difficult year,' said Adam Goldstein, immediate past global chairman, Cruise Lines International Association, and former vice chairman, Royal Caribbean Group.

 

Zeiger most recently reported to Donna Hrinak, who joined as SVP corporate affairs in September, taking on responsibility for government relations, communications and public relations.

 

Zeiger brought diverse experience to his Royal Caribbean role. He had been SVP communications with the Philadelphia Eagles and spent 11 years as director of communications for Amway. Earlier roles were as VP and creative director for Weber Shandwick's Detroit office, director of special projects for Michigan's Wayne County executive office and staff writer for The Detroit News.

 

Chief Communications Officer Rob Zeiger has left Royal Caribbean Group (seatrade-cruise.com)