RCL's Earnings Tumble

[ChevyCruiser]

It seems a bit suspicious that everyone is urging us to sell RCI stock now when it is spiraling downward. We bought it at about $35 per share and we plan on keeping it until the time that it is at or above $35. It's sure to rebound eventually. Have patience everyone.

 

And, in the meantime, use those shareholder OBCs as a tax-free dividend!

[Toddcan]

What are the risk of RCL going under? I will only start to get worried or concern when NCL goes under. After all, the weakest tends to go first, and I think NCL is the weakest of all the cruise companies right now. Their parents Stars is not doing well in Asia, and there were numerous report that say their other parent Appollo Management have taken a beating due to the financial melt down.

 

In fact, I just bought some RCL shares this morning. Though, to be fair, I did sold all of it 20 minutes later with a tidy profit. :D I suppose right now is the time to get greedy as others are fearful. :) But apparently I'm not greedy as I would have made more money if I were to hold it for another 30 minutes.

 

I don't buy stocks on my own, so I am the furthest from an expert by any means, but wouldn't you have to buy a truck load of stocks to make a "tidy profit" in 20 minutes given the fees associated with buying and selling stocks? Just curious.

[William W]

I don't buy stocks on my own, so I am the furthest from an expert by any means, but wouldn't you have to buy a truck load of stocks to make a "tidy profit" in 20 minutes given the fees associated with buying and selling stocks? Just curious.

 

I suppose it all depends on the definition of truck load of stocks and tidy profit. The stock bounced back 5% between when I bought and when I sold. And the stock went up a further 5% since I sold. Apparently I wasn't greedy enough. To be fair, I did buy near the bottom, when the stock was down 26% from yesterday close.

[negc]

I suppose it all depends on the definition of truck load of stocks and tidy profit. The stock bounced back 5% between when I bought and when I sold. And the stock went up a further 5% since I sold. Apparently I wasn't greedy enough. To be fair, I did buy near the bottom, when the stock was down 26% from yesterday close.

 

Maybe you could offer your definition of a truck load of stocks. 5% is a nice profit but whether or not it provides you with a tidy profit really depends on the amount of stock you are buying and selling. If the total number of shares is significant, I assume that you have also considered the tax implications of short term gains that might diminish your actual profit and the possibility that what you term the bottom, could also turn out to be a high to which the stock might not return. If you can tolerate the risks inherent in day trading, more power to you.

[yogimax]

I don't buy stocks on my own, so I am the furthest from an expert by any means, but wouldn't you have to buy a truck load of stocks to make a "tidy profit" in 20 minutes given the fees associated with buying and selling stocks? Just curious.

 

No, buying a truckload of stocks only results in mirroring the averages. The only way to make a "tidy profit" in 20 minutes is to buy one stock and hope it has a significant price gain. Of course, it could also have a significant price loss. Caveat Emptor!

[negc]

No, buying a truckload of stocks only results in mirroring the averages. The only way to make a "tidy profit" in 20 minutes is to buy one stock and hope it has a significant price gain. Of course, it could also have a significant price loss. Caveat Emptor!

 

I think Toddcan meant buying truckloads of one stock and was trying to point out the costs associated with both the purchase and the sale. Your point about the risk of a significant price loss is lost on those who think that they can time the market and determine with certainty when a stock has bottomed out and is about to rise.;)

[yogimax]

I think Toddcan meant buying truckloads of one stock and was trying to point out the costs associated with both the purchase and the sale. Your point about the risk of a significant price loss is lost on those who think that they can time the market and determine with certainty when a stock has bottomed out and is about to rise.;)

 

Exactly, but most discount brokers today charge a standard fee for any sized transaction. I can buy 1 million shares (HA!) of RCL on Ameritrade for ten bucks in commission cost. I still wonder why so many folks use the full-service brokers who charge exorbitant commission rates, when the discounters provide just as good execution.

[yogimax]

Stock down 19% today.

 

UGH!!!

[xpcdoojk]

Stock down 19% today.

 

UGH!!!

 

And your joy increases. :rolleyes:

 

Gotta love a broken record to even read this forum any more. :D

 

jc

[PeterPan]

Okay, we must admit that "bankruptcy" cannot be ruled out. However, how many people actually believe that there is a reasonably high percentage chance that the second largest cruise corporation in the world will completely fail and go out of business?

 

Yes, times are tough for nearly all corporations (perhaps not for the stock analysts :p) but I seriously doubt that RCL will cease to exist.

[Captain Jake]

Win some,lose some.Bought 2500 in RCL stock now worth 7-800 have gotten nice returns in OBC's.Loaned 10000 to DW kids and have only gotten grief for not trusting them enough to loan em more.Makes RCL look like a nice investment------------------BT

[klfhngr]

It's dropping........ Holding out for $5.00..... Or should I buy now?!

[nbsjcruiser]

do you agree?? The news this morning shocked me, I knew things were bad, but not that bad!

 

I have been concerned for RCI for a couple of years now. I enjoy cruising that line but there have been itinerary decisions made in the last few years that make me shake my head. And they could not have picked a worse time to launch the behemoth of all cruise ship - terrible timing. Many people are trying to cut back but getting a decently priced 7 day cruise on RCI is very difficult these days. Carnival and Princess seem more competitive from what I've seen.

[klfhngr]

I have been concerned for RCI for a couple of years now. I enjoy cruising that line but there have been itinerary decisions made in the last few years that make me shake my head. And they could not have picked a worse time to launch the behemoth of all cruise ship - terrible timing. Many people are trying to cut back but getting a decently priced 7 day cruise on RCI is very difficult these days. Carnival and Princess seem more competitive from what I've seen.

 

I agree.. they should've backed out of the Allure... At least for now, but it's to late...

[yogimax]

I agree.. they should've backed out of the Allure... At least for now, but it's to late...

 

Absolutely correct! Makes you wonder what the executives were thinking!

[tazdeb]

Did anyone else notice the "unexpected" 13.3 million dollar insurance cost? I wonder if thats what the out of court settlement was to the wife and family of that guy who died misteriously on the Radiance in Europe.

[Captain Jake]

Absolutely correct! Makes you wonder what the executives were thinking!

 

You know the old saying "Hindsight is 20/20"

[HighlandCruzer]

I agree.. they should've backed out of the Allure... At least for now, but it's to late...

 

New ships, especially the story-generating kind like Oasis, make the cruise lines tremendous amounts of money during their inaugural year. The cruise line is willing to take on more debt in order to generate more cash.

[Fblack]

Today I bought $12,000 of an RCCL bond that pays a 19.75% yield.

 

I figure that if things get tough, RCCL will sell some assets (ships) or maybe Azamara, or merge. I don't think they will fold.

[MDSue]

I don't think RCCL is the only company suffering right now. Anyone who has money in the stock market for the most part has taken a serious beating, including many retirement accounts. Much of my retirement accounts were in mutual funds that were highly recommended by investment counselors. All of them have lost huge sums lately. Money put in savings accounts at a measly 2 or 3 percent wouldn't keep up with inflation. So unless the economy recovers from the worst downward spiral in my lifetime, we're all pretty much in the same boat. I'm going to hold tight to my investments, not panic and hope like he** that the economy recovers, not just for RCCL, but for all of us.

[setsail]

Today I bought $12,000 of an RCCL bond that pays a 19.75% yield.

 

I figure that if things get tough, RCCL will sell some assets (ships) or maybe Azamara, or merge. I don't think they will fold.

 

Good for you. That will just keep paying all the obc you need plus paying when your are not cruising. I have had the bonds for a few years now.

[SherriZ366]

Did anyone else notice the "unexpected" 13.3 million dollar insurance cost? I wonder if thats what the out of court settlement was to the wife and family of that guy who died misteriously on the Radiance in Europe.

You are referring to the Missing Honeymooner case and it was the Brilliance and his widow got paid off at least 18 months ago. I think her settlement was around $1 million.