Cruise Company Shares

[sotong]

Lots of knowledgeable people on here and lots of discussions over whether to buy shares now or not but wondered if you can help me with my query ....
Carnival or Royal Caribbean shares? any views on which one has best benefits - pros and cons ...   do they operate ni the same way 
I'm aware of who own which brands and think the OBC is similar - share price for RC is higher currently so minimum purchase - 100 shares for each I think more expensive

Any thoughts or advice?? Thanks.

[ovccruiser]

Buying shares, as you probably know, is a gamble, however, if you cruise 2 or 3 times a year, the returns as regards onboard spend etc may well reap more benefit than either dividends or increase in share price. You pays your money and takes your chance 😄

[JT1962]

Lots of knowledgeable people on here and lots of discussions over whether to buy shares now or not but wondered if you can help me with my query ....
Carnival or Royal Caribbean shares? any views on which one has best benefits - pros and cons ...   do they operate ni the same way 
I'm aware of who own which brands and think the OBC is similar - share price for RC is higher currently so minimum purchase - 100 shares for each I think more expensive

Any thoughts or advice?? Thanks.

I would only buy shares currently if you feel it is good investment for future growth, not for the dividends or onboard credit. Carnival already stopped their dividend and I expect other cruise lines to do the same. The onboard credit may be the next to go and is not a guaranteed benefit.

That being said, Carnival is cheaper and appears to have more cash available to ride out the cruising stoppage until at least early next year. I would expect cruise stocks to drop on Monday due to the CDC requirements that came out Thursday after the markets closed, so there may be a buying opportunity then.

[chipmaster]

CCL and RCL haven't faced such a dire situation in their whole lifetime, dang this is worse than even war.

 

The Diamond,  Grand, Zaandam etc. will be indelible imprinted on many peoples mind for years alone with other images from the 2020 COVID pandamic.

 

They will need to work hard that things are safe, and you always have the unrational behavior from governments and states that the cruise line have no control

 

But.. people have come to love cruising, but I can see some ports/countries may make things very difficult with more complicated protocols.

 

I won't be cruising at all in 2020 so no hurry in buying shares, and think they share price will go lower before it every goes up again.  Wait and you can roll the dice for freebies and maybe a 10 banger.

[workerbee45]

If you believe in the cruise industry... Buy Shares!! 

We bought close to the low and have doubled our investment.  After taking 13 cruises, I believe in this industry and have a strong feeling that it will be back sooner than later.  It's always a gamble on the market, but in looking at the pre-covid values, they should go Up, Up, Up!! 

[ovccruiser]

CCL shares +156% from lowest price in last 52 weeks 

[OhioCruiseNuts]

It will take a few years for cruise and airline stocks to fully recover but there remains such a large upside gap to be filled that I've got a 33% allocation in those categories.  Both industries are here to stay and will outlast the current fear and smear campaigns.  Patience is the key.

Edited June 30, 2020 by OhioCruiseNuts
misspelled word

[drsel]

You have to use a systematic value averaging plan to invest in Carnival

[rkacruiser]

I own shares in both companies with my larger $$ investment in CCL.  (I have owned them the longest and have been faithful in re-investing dividends.)  Why have I done so?  Because I believe in their product as well as the industry as a whole.  

 

During the Great Recession, RCI's shares dropped "like a rock" in comparison to CCL's.  I decided to sell my holdings in RCI as the price was dropping.  Took a loss which was helpful on my my tax return for that year.  About 30+ days after I sold, the price reached what turned out to be the bottom for RCI.  I bought shares at just above its lowest price.  (Sheer luck!)  It has since performed quite well and I am still "above water" on that investment.  (Although, not as far "above water" as I was earlier in 2020.)

 

I have struggled as to what to do with both of these investments for months.  My crystal ball is as foggy as anyone's.  My brokerage company's recommendations are to Sell CCL, but Hold RCI.  Currently, I am holding on to both.  But, as tempting as it is at what may turn out to be "fire sale" stock prices, I am not buying more.  At least not until I see successful cruising beginning with booked revenue from guests on the balance sheet.

 

As far as OBC, certainly have benefited much from CCL's.  Not so much with RCI.  I have found their restrictions on applying such credit to one's account more "restricting" than CCL's.    

[iancal]

I believe that the 'smart' money has already been in and gone away with their profits-in some cases money was doubled in a few weeks.

 

I would to wait a little longer to buy.  Lots of issues with vaccine trials, several have been suspended.  There is no silver bullet on the horizon.  The longer this goes on the more chance that the cruise lines will raise money by watering down their per share equity through convertible instruments.

 

I have no doubt that the industry will survive.  Even if one or more goes into bankrupcy the cruise industry will be there if demand exists.  It will simply mean refinancing, new players, a decrease in equity value, and of course nothing for unsecured creditors.  Many large corporations have gone down but are still around and flourishing.

Edited October 14, 2020 by iancal

[rkacruiser]

On 10/14/2020 at 12:44 PM, iancal said:

I have no doubt that the industry will survive.  Even if one or more goes into bankrupcy the cruise industry will be there if demand exists.

 

Our thinking is the same.  I think the Companies will do whatever is needed to keep from going into bankruptcy.  As far as it may be possible to do.  

[iancal]

Yes, and depending on how long this covid challenge persists at some point it may be advantageous  to pull the plug and go the bankruptcy route.

 

I have no doubt that each of those large corporations have legal, accounting, and business teams working on different outcomes.....including bankruptcy.

 

 

Edited October 15, 2020 by iancal

[copi2boys]

how many CCL shares do you have to have before you get credit?

[rkacruiser]

On 1/29/2021 at 12:45 PM, copi2boys said:

how many CCL shares do you have to have before you get credit?

 

100 shares

[Incognito1]

We bought in not too long before it tanked.  Wishing we' waited for the $8 CCL shares!  But it's rising again; we are still out thousands of dollars in value, but hopefully it will rebound before we are wanting to remove the investment.

[Gail & Marty sailing away]

On 1/29/2021 at 12:45 PM, copi2boys said:

how many CCL shares do you have to have before you get credit?

100