Shareholder Benefit Extended

[xpcdoojk]

Is there a minimal amount of shares you must own in order to get the OBC ? Hypothetically, couldn't one buy just ONE share and receive the OBC ($150?) ?

 

David:D

 

Nope!

 

The level of stock ownership is 100 shares, not 1. The wierdest part is there is no additional benefit for owning say 1000 shares unless you book rooms for your kids, and the wife owns at least 100 of the 1000. :D

 

jc

[CHAMPDDS]

So my wife could buy 100, and I buy another 100, and then we can get $200 OBC total....How does one go about getting the OBC ? And does this qualify for every cruise we take ?

 

My next cruise, we have two rooms, and my wife is booked 'technically' in one room, and I am in the other, with the kids split into different rooms with us.

 

David:D

[xpcdoojk]

So my wife could buy 100, and I buy another 100, and then we can get $300 OBC total....How does one go about getting the OBC ? And does this qualify for every cruise we take ?

 

David:D

 

1 credit per stateroom. So unless you book separate rooms you are still stuck with a single OBC. You get it for each cruise that you book providing you contact RCI and let them know you have the stock as it is not automatic. In my case since I do my brokerage online, I cut and pasted the information into my email that I sent to RCI, and withing 48 hours I had the OBC posted to my reservation. The link to the email address is available at the RCI web page. Many people fax their brokerage statement to RCI at the fax number indicated. Either way it is very easy to do.

 

I bought Carnival stock and my wife bought RCI stock with money in an old IRA account so, I can get the OBC on a whole lot of cruise lines. Since, I don't cruise only with RCI this is a better option than buying 200 shares of just RCI. The share values are very close with Carnival being slightly more valueable. I think the OBC values are better with RCI, but again they are very close.

 

jc

[sgtgerryf]

I'm sorry, but I just don't see the big deal with the OBC by owning RCCL stock.

 

If you are paying $43 and change per share and you need 100 shares, you are laying out $4300 plus charges to the broker handling the purchase.

 

In turn, you get a whopping $200 back per cabin and from what I read on this post, a stock that is not a real great performer.

 

Sounds like a pretty steep layout to me for 200 bucks OBC, plus a 2 dollar devaluation of the stock value would wipe out any OBC you get.

[CHAMPDDS]

After some pondering, I have to agree with you SGT.....there are much better investments out there...:D

 

David

[Shak]

Sgtgerryf while I agree you should buy this or any stock for its investment value to your needs, but keep in mind this benefit is for every cruise you take with RCCL or Celebrity. I have gotten over $800 of use after my next cruise in October. I also bought at $19. Another option is to put the stock in your retirement plan.

 

Shak

[truffles2]

Does anyone have a link to the FAQ on the shareholder benefit? I've tried searching the RCCL site, but I'm coming up empty.

 

Here is the link:

http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-shareholderbenefit

 

Last year alone we took 6 cruises, 3 of them longer ones and received a total of $800 on board credit--not to be sneezed at!

[Moeve]

By the way there are still the dividends - the OBC is the cherry on top since it is also not taxable. For those of us who cruise with in the RCI company more often and on longer cruises that adds up to quite a cherry!!

[yogimax]

I'm sorry, but I just don't see the big deal with the OBC by owning RCCL stock.

 

If you are paying $43 and change per share and you need 100 shares, you are laying out $4300 plus charges to the broker handling the purchase.

 

In turn, you get a whopping $200 back per cabin and from what I read on this post, a stock that is not a real great performer.

 

Sounds like a pretty steep layout to me for 200 bucks OBC, plus a 2 dollar devaluation of the stock value would wipe out any OBC you get.

 

If you buy only 100 shares, it actually is a big deal.

 

1. Buy through a discount broker. Total commission should be about $10.

 

2. If you cruise twice a year for five years and receive $100 credit each time, that is a total of $1000. That's a 23% return on your original investment. Using your figure of $200 results in a 46% return.

 

3. As to the performance of the stock, who knows? Anyone who tells you they can forecast where the stock will be in five years believes Cramer is always right:) What is true is that the cruise industry is in the late stages of a growth phase. There are only two major plays in the field, RCL and CCL. Over the recent past, CCL has outperformed RCL. The opposite may be the case in the next five years.

 

Yogi

[gillianrose]

By the way there are still the dividends - the OBC is the cherry on top since it is also not taxable.

 

...YET! (You just know "they" will find a way!)

[Aldeya]

Is there a minimal amount of shares you must own in order to get the OBC ? Hypothetically, couldn't one buy just ONE share and receive the OBC ($150?) ?

 

David:D

 

You have to own 100 shares minimum to be eligible for the OBC.

[OHCruisinDad]

Does anyone have a link to the FAQ on the shareholder benefit? I've tried searching the RCCL site, but I'm coming up empty.

 

There is a separate web site. Go to www.rclinvestor.com and you will find a link for the shareholder benefit. Click on the link and you will see all of the requirements and information for claiming your credit. Another benefit is that the credit is tax free! :D

[gillianrose]

You have to own 100 shares minimum to be eligible for the OBC.

 

This was a great value a couple of years ago, but not now. The share price is too high and the OBC too low; there is too much of a discrepancy.

 

Also, have you taken a good look at the Insider sales vs. Acquisitions? The top guys's only acquisitions are stock options, their other recent movements are out of the stock, i.e. sales.

 

When they exercise their stock options, they get RCL stock at just over $20, yet when you buy RCL now, you'll pay more than $40 per share.

 

Cruise prices on the most desirable suites are up, too, and prices are seldom steeply discounted, which makes the return on investment for cruisers who choose to cruise in the top cabins an especially poor deal.

[negc]

I'm sorry, but I just don't see the big deal with the OBC by owning RCCL stock.

 

If you are paying $43 and change per share and you need 100 shares, you are laying out $4300 plus charges to the broker handling the purchase.

 

In turn, you get a whopping $200 back per cabin and from what I read on this post, a stock that is not a real great performer.

 

Sounds like a pretty steep layout to me for 200 bucks OBC, plus a 2 dollar devaluation of the stock value would wipe out any OBC you get.

 

Actually, when we bought our original 100 shares of stock the price was slightly less than $30 a share. It had been as low as $16 or so. Since then the price has risen and declined periodically and currently seems to be hovering around the $43 mark. At the end of last month it had increased by 21% over the same date a year earlier. We should all know, however, that the record of performance can vary significantly depending on the dates you choose for your comparisons. It may not be a "real great performer" but it isn't exactly a disaster either.

The point you are missing is that most of us didn't buy the stock as an investment vehicle so we aren't terribly concerned about its day to day or week to week performance. Stocks can be quite volatile.

Since we first bought our 100 shares of stock we have taken at least 9 cruises on Royal Caribbean, so the amount we have received in On Board Credits is not negligible (although it probably pales in contrast to what we paid for those cruises, LOL) but we would have taken those cruises anyway and would have spent that same amount without receiving any OBCs. Drops in the value of the stock don't really wipe out anything unless you sell your stock at that lower price, so it shouldn't factor into your consideration.

These boards are not a good vehicle for getting or giving investment advice, but they do serve to alert folks to another way to get a benefit from the cruiseline if you are a frequent passenger.:)

[rubrrick]

When I purchased RCL stock it was in the low 30s. For the past two years from our cruises we have received over $2400 in Onboard credits.

 

If you cruise once per year...........maybe it's not worth the investment. However, I have enjoyed an excellent return.

[Smiling Cruiser]

Can anyone tell me where to look for the onboard credit in my RCCL reservation page? I've been watching for it and it's not showing. Perhaps I'm in the wrong place. Thanks. kathy

[songster2]

I bought 100 shares with an IRA rollover. It was money I couldn't touch for a few years yet, so I now am getting tax free (at the moment) OBC with money that I couldn't use for some time. I plan to cruise as many times as vacation days and money allow. Plan to book another in a couple weeks when on board the Jewel. :D

[renech]

Is the OBC additional to any C&A credit you receive?

[zebra36]

Is the OBC additional to any C&A credit you receive?

 

Yes.

[buchie614]

Here is the link:

http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-shareholderbenefit

 

Last year alone we took 6 cruises, 3 of them longer ones and received a total of $800 on board credit--not to be sneezed at!

 

I agree, it would not early $800. in interest in the bank. We have l00 shares, took 6 cruises last year, $600. have 4 planned this year $400. buys a lot of foo-foo drinks.

[First-Cruiser]

Hello,

if i do not need all of my shareholder onboard credit, do they pay the money back in cash ?

[truffles2]

No. You can use it for tips and that would take a chunk.

[skisteamboat]

FWIW, I just got my July issue of Kiplinger's magazine and on page 18 it recommended buying RCCL stock. Suggests a target price of $48 in 6 months.

 

Cheers