Royal Caribbean Stock

[morfred]

I may not be happy with the way Celebrity is currently handling the cruise line but the parent company, Royal Caribbean (of which I am a stockholder), has seen a 100% increase in its stock in the last 6 months. Ya win some, ya lose some.

[TiredofTheGame]

It the long game......... still 20 billion dollars in debt!!

[jwlane]

Means little, considering the 80+% drop during the pandy.

[shellunderwater]

2 hours ago, jwlane said:

Means little, considering the 80+% drop during the pandy.

Actually it doesn't mean little if you bought the stock after the pandemic.

 

I too am up 100٪ on mine.  But sure some are upside down.

[mahasamatman]

Stock value for cruise lines is irrelevant to us. We have already made back more than our initial investment in OBC.

[chisoxfan]

16 hours ago, morfred said:

I may not be happy with the way Celebrity is currently handling the cruise line but the parent company, Royal Caribbean (of which I am a stockholder), has seen a 100% increase in its stock in the last 6 months. Ya win some, ya lose some.

Not sure why you would buy stock in a company where you don't approve of the management and is 18 billion in debt, operating in a challenging environment (rising labor, fuel, food prices, debt financing). Don't forget it isn't profit until you sell. 

 

Regarding the OBC this is great and always cited by posters but it is certainly possible to take advantage of it by buying the stock momentarily as all that is required is proof that you 'owned'  it  when you apply prior to sailing. JMHO

[Jim_Iain]

Happy you posted as I hadn't looked since last time I downloaded my statement and applied for 10 cruises.    I only own the stock for the OBC's.    I bought it at a good price and happy to see I doubled my money but --- funny money as I don't plan selling it.    Just the money we have received in OBC's have really neutralized the volatility.

[Schmoe38]

5 hours ago, shellunderwater said:

Actually it doesn't mean little if you bought the stock after the pandemic.

 

I too am up 100٪ on mine.  But sure some are upside down.

The easy decision is when to Buy.

 

The tougher decision is when to Sell.

[TMLAalum]

I have bought/sold when OBC became moot when perks were included. The OBC from that purchase was a +10% gain over several cruises. Bought again/sold again and bought and own as of now. 
Had I hung onto the stock a little longer the first time around would have tripled my initial investment. Oh well, can’t complain since am in the black overall.

[Texed]

Bought ours at $9.44 a share.  I guess we did okay. 

[morfred]

7 hours ago, chisoxfan said:

Not sure why you would buy stock in a company where you don't approve of the management and is 18 billion in debt, operating in a challenging environment (rising labor, fuel, food prices, debt financing). Don't forget it isn't profit until you sell. 

 

Regarding the OBC this is great and always cited by posters but it is certainly possible to take advantage of it by buying the stock momentarily as all that is required is proof that you 'owned'  it  when you apply prior to sailing. JMHO

Eh, maybe  I bought before I felt that the company was losing touch and maybe I am am thinking of getting out at a profit. You need to know the facts not take a wild guess.

 

[shellunderwater]

I also use my shares to sell covered call options.  I don't take big risks, but pick up a few bucks a week profit.  Every little bit helps.

[Lastdance]

16 hours ago, Texed said:

Bought ours at $9.44 a share.  I guess we did okay. 

Too bad that I was only 12 when the price was that low, so my dad wouldn't let me buy 100 shares!  All kidding aside...you done good!😊

Edited January 29, 2023 by Lastdance

[grandgeezer]

1 hour ago, Lastdance said:

Too bad that I was only 12 when the price was that low, so my dad wouldn't let me buy 100 shares!  All kidding aside...you done good!😊

And you didn’t sell when it was $132+ in January 2020? Let me guess, you’ll more than make up the difference in shareholder obc.

[marvelous35]

There is a pretty good thread on RCCL stock in the Royal Caribbean boards:

 

 

One person is a finance guy and he is concerned about all the debt they have due to the pandemic.

 

Personally, I bought during the pandemic near the low and I am holding on to some shares.  I also bought and sold some recently.  I am not sure it is a good buy at the current prices.  Expecting the stock to get back to pre-covid valuations is not realistic because of all the debt.  But I believe in Royal Caribbean to deliver a good product and to be able to make money.  That is a reason to own the stock.

 

I view the OBC benefit as a dividend on the first 100 shares. It is nice, but probably not the best reason to own the stock.

[Wineaux007]

2 hours ago, Lastdance said:

Too bad that I was only 12 when the price was that low, so my dad wouldn't let me buy 100 shares!  All kidding aside...you done good!😊

It was at $5.50 a share just a year before you joined Cruise Critic.  😜  How old are you?  LOL

 

[mnocket]

23 hours ago, chisoxfan said:

Not sure why you would buy stock in a company where you don't approve of the management and is 18 billion in debt, operating in a challenging environment (rising labor, fuel, food prices, debt financing). Don't forget it isn't profit until you sell. 

 

Regarding the OBC this is great and always cited by posters but it is certainly possible to take advantage of it by buying the stock momentarily as all that is required is proof that you 'owned'  it  when you apply prior to sailing. JMHO

This is an important question and totally appropriate.  I've been selling my cruise line stocks and have reduced my holding by 50% in the past month - due entirely to the factors you mention.  It seems to me that the post Covid rebound has petered out. The fact that many different cruise lines, perhaps none more so than Celebrity, have recently decided to enact cutbacks and price increases tells me that there is an industry-wide reassessment of the industry's financial outlook.  In the near term it seems wall street is rewarding the companies for these changes.  Stocks also seem to go up when layoffs are announced.  Wall street loves cutting expenses... at least in the short term.  The hope is that cutting expenses will lead to an improved future.  Sometimes it does - sometimes it doesn't.  In the case of the cruise lines I'm not sure it will.  It wouldn't surprise me at all if we see some bankruptcies in the industry in the next year or two.  I've decided to sit on the sidelines and watch.  I intend to sell my remaining cruise line stocks in the next month or so.

Edited January 29, 2023 by mnocket