Why purchase FCC and stock just for a small amount of credit?

[nickle58]

The talking part of your MBA isn't listening....it isn't the hundred dollars....its the extra OBC of 50 to 200. that can be used to pay gratuities, shore excursions or whatever.

[lnew1gd1]

We have 5 cruises of 12 days or more booked for 2013 (not counting this year's cruises). That's $1,000 in OBC from the stock holder benefit. I think that's better than any dividend any company pays for only 100 shares of stock.

 

Plus we use FCV certificates for all our cruises. So, we paid $100 for the certs and get it back as a reduction in the cruise balance. PLUS, it will be $200 OBC per cruise. Add the two of them together and that's $2,000 in free money!

 

Gotta love it!

[daijayx2]

No. But Coke gives me large amount of cash dividends and growth that I can use to buy whatever I want;)

 

Understandable, But don't carnival also bring dividends and growth? and OBC is just as good as cash while cruising!

its a "perk" given to the loyal customers of carnival for investing in a multimillion dollar company. I'm pretty sure people who own these stocks get more than just OBC in the long run. I was using coke just as an example.. Like every time you shop you don't get one free, where as every time you cruise you do get free OBC. Just seems like win win for those who buy the stock. I for one don't own any but it I could afford to invest that much right now I don't think it would be a bad one.

[YubaSutter]

I bought the stock when it was $18/share. Ive received $600 in OBC In the last 2.5 years. Today the stock is at $33/share. pretty good compared to my mutual funds and other investments.

[elcuchio24]

Understandable, But don't carnival also bring dividends and growth? and OBC is just as good as cash while cruising!

its a "perk" given to the loyal customers of carnival for investing in a multimillion dollar company. I'm pretty sure people who own these stocks get more than just OBC in the long run. I was using coke just as an example.. Like every time you shop you don't get one free, where as every time you cruise you do get free OBC. Just seems like win win for those who buy the stock. I for one don't own any but it I could afford to invest that much right now I don't think it would be a bad one.

 

The yeild is similar, but KO has a 25+% growth rate and up 13% over the past year.....at the same token CCL is down 16% for the year and has growth estimates of around 8%, also EPS is negative as well. If you cruise 5-6 times a year, the OBC certainly can pile up. But for a long term investor, CCL is currently not a good buy as an investment.

[Sargent_Schultz]

The FCC pays a lot more than 8% and is tax free.

 

Carnival stock will never go to zero so is always worth something. The OBCs (unlimited) that you receive from those are tax free and the stock itself pays a (currently) 3.1% yield dividend, which isn't bad.

 

Even if you never cruise, CCL stock isn't a bad investment and if you do cruise on Carnival (and of the brands), the more you cruise, the more sense it makes.

[elcuchio24]

I bought the stock when it was $18/share. Ive received $600 in OBC In the last 2.5 years. Today the stock is at $33/share. pretty good compared to my mutual funds and other investments.

 

But would you buy it today?

[Banditswife]

We bought the FCC in Dec, knowing we will be cruising this year. $100toward our 7 day + $100 OBC is a good thing. IMO you cannot earn 100% interest in a year on any normal investment. As far as the stock- we have a few investments in the stock market anyway, why not invest some of it to get another $100 OBC. The investment was about $3000,but has gone up slightly since we bought it. No, we'll not get rich with it, but $100 off our S&S bill every time we cruise, is a good deal. We can always sell the stock when we are no longer cruising every year.

[cuyahoga11]

I really do not understand why people choose to purchase a future cruise credit or buy Carnival stock just to get a few dollars in OBC. Does not make financial sense to me. Why give a company your money in advance for them to use and not put the money to work for yourself? Pay $200.00 for a FCC, later get $100 in OBC and $100 off the price of the cruise. If you take your $200 and put into a interest bearing account you would come out a head.

 

Also why purchase 100 shares of stock and have it take 10 cruises or more to break even??

Every investment adviser tells you that purchasing singles stocks is not a wise investment scheme.

 

If you paid $200.00 for a FCC you got ripped off

[Hugh0906]

But would you buy it today?

 

I don't think so.

 

But only because it almost back to where it was before the Costa ship sank.

 

Now that said, I own the stock, more then 100 shares.

 

If I didn't then yes even at today's price it is decent investment compared to Coke.

 

It currently pays a higher dividend then KO. <Still below the levels of 2007>.

 

Like to return more then KO over the next 5 years imho.

 

That doesn't even account for OBC.

 

The obc btw is good across the entire Carnival Corporation fleet.

 

 

Hugh in Dallas

[Sargent_Schultz]

But would you buy it today?

 

I do via free dividend reinvestment.

[elcuchio24]

I don't think so.

 

But only because it almost back to where it was before the Costa ship sank.

 

Now that said, I own the stock, more then 100 shares.

 

If I didn't then yes even at today's price it is decent investment compared to Coke.

 

It currently pays a higher dividend then KO. <Still below the levels of 2007>.

 

Like to return more then KO over the next 5 years imho.

 

That doesn't even account for OBC.

 

The obc btw is good across the entire Carnival Corporation fleet.

 

 

Hugh in Dallas

 

I still own more than 100 shares, but my price point when I bought them is low enough that I am comfortable with the investment.

 

Couldn't disagree with you more about KO though, it was WAY higher growth forcast than CCL, vastly more cash flow, exposure in emerging markets and a great hedge against the dollar.

[elcuchio24]

I do via free dividend reinvestment.

 

Well that's a very good point, I guess I do as well, although in a fairly small amount:)

[Hugh0906]

I still own more than 100 shares, but my price point when I bought them is low enough that I am comfortable with the investment.

 

Couldn't disagree with you more about KO though, it was WAY higher growth forcast than CCL, vastly more cash flow, exposure in emerging markets and a great hedge against the dollar.

 

That's okay. I have absolutely nothing against KO.

 

Hugh0906

[elcuchio24]

That's okay. I have absolutely nothing against KO.

 

Hugh0906

 

Well you know how it is, I'm sure either of us could argue either side of many equities til the cows come home, just the nature of the beast.:)

[Hugh0906]

Well you know how it is, I'm sure either of us could argue either side of many equities til the cows come home, just the nature of the beast.:)

 

Exactly, I do watch KO. It has done well the past year,

 

I have never owned it however. Personally I think that ship has sailed. If I owned it at $60, I would be happy to continue to hold it.

 

Hugh0906

[firefly333]

Couldn't disagree with you more about KO though, it was WAY higher growth forcast than CCL, vastly more cash flow, exposure in emerging markets and a great hedge against the dollar.

 

Just about any stock has higher growth than CCL. Its only up as high as it is because they put the dividend back.

 

They actually lost money first qtr, and last qtr last year, missed their numbers.

 

Growth is not much over zero lol .. hard to call it a investment... its a buy to get free onboard credit.

 

I own CCL from longer ago, before it sold off so badly .. and sold 600 shares at a loss last year just because I too think its a terrible investment at this point. .. and that was before concordia hit the rock and the late fire.

[Frank12]

As far as the FCC, you give them 100 dollars in advance which is applied to your cruise once booked. Then they give you FREE money ($100.00 for 7 day) on your account.

 

A free $100.00 for tying up a hundred bucks for a year or less is an absolute no brainer!

[firefly333]

 

A free $100.00 for tying up a hundred bucks for a year or less is an absolute no brainer!

 

Not that Im complaining about tying up $100 (or over $1000 in my case) .. but its a assumption on your part that people will use them within one year. I bought over 10 back when they were only sold on a few ships 4 years ago. Mine are all good for 5 years.

 

I think I still have 4 more to use up and I've now been booking group cruises from a UK TA where all the money is paid upfront, so I cant use these FCCs. I can only use them for my last minute bookings thru my PVP if I find a super deal. Luckily if I dont use them in time, I can cancel them and get a refund.

[Frank12]

Not that Im complaining about tying up $100 (or over $1000 in my case) .. but its a assumption on your part that people will use them within one year. I bought over 10 back when they were only sold on a few ships 4 years ago. Mine are all good for 5 years.

 

I think I still have 4 more to use up and I've now been booking group cruises from a UK TA where all the money is paid upfront, so I cant use these FCCs. I can only use them for my last minute bookings thru my PVP if I find a super deal. Luckily if I dont use them in time, I can cancel them and get a refund.

 

Pretty sure you are in the minority on that one.

[firefly333]

Pretty sure you are in the minority on that one.

 

I see questions from folks who bought them earlier. I looked and I only have to use up two more .. and I think lots bought quite a few that I know of.

 

I see mine are good until Sept and Oct 2014, so I must have bought them in 2009.. and then the next ones were only good for 4 years, with some new terms.

 

Then I think last year?? they changed them to being good for only 2 years which a lot of people dont like, but what can they do?? Some people dont cruise every year, and 2 years to me is too short of a period, but it is what it is.

 

They cant be applied to every kind of Carnival booking. Every cruise in my signature are group cruises booked a way that they cannot be used, nor can I get any price drops, but I got as much as 50% off the posted Carnival rates. We have a lot on our forum who will tell you Im not alone, but since we cant discuss specifics ..

 

I book 6 to 8 cruises a year, and had to change all my ES bookings and other things enough that most of my knowledge I post here on CC is from personal experience, not from guesses. I might be in the minority .. who knows.. but Ill grant you that there could be more booked full price and that only book one cruise a year than people like me who book a lot of cruises and keep a lot of FCCs on hand at a time.

[mrpayroll]

Someone who thinks that giving Carnival $100.00 and then receiving that $100.00 back for payment and also receiving another $100.00 as OBC is NOT a good investment SHOULD NOT get into ANY stock. :eek:

[Webecruzen]

We cruise 3 to 4 times a year and average $200.00 to $300.00 a year in onboard credit non taxable as stock holders. Add to that a dividend paid most years and the stock investment of $3100.00 pays off pretty well still holding our original investment value +. Future cruise certificates, why not at the least making 50% to 100% on original investment that's a not brainer if you are a frequent cruiser.

[Deckhandoug]

10 year returns:

 

S&P 500 30.39%

Dow Jones 28.96%

 

CCL 2.14%

 

1 and 5 year averages are negative for CCL

 

No, it is not a good investment unless you cruise a lot.

 

FCC = good investment.

[EmmasNana]

But would you buy it today?

 

 

Actually, I had a sale order in today, but it didn't take. I have been buying and selling CCL several times a year once I became interested in the stock. My original holding was purchased in I think 2009 for $20.09.

 

I told my daughter to purchase 100 shares when it was recently $29.50. We are doing a family cruise and thought they could use the extra OBC. Once after the family cruise, I will tell her when to sell it, and at a profit. I told her it could go down, but she still got a good price and will make a profit.

 

But I am a stock trader...not a long term holder of any stock, the exception would be my holdings in Apple.