Anyone know if buying CCL stock at $35 is a good deal?

[ohiowilly]

Bought mine at $37...cruised 3 times this year, 2 $100 and 1 $50 OBC. Got 2 dividend checks....

I'm happy...that's all that matters :)

 

Do what feels right as no one ever knows what will happen with stocks.

 

For those of you who are stockholders - Does the OBC that you've received appear on your annual 1099, along with your dividend earnings?

 

I'm just curious if OBC is considered investment income, in this situation.

[Vitamin_Sea]

They have given the obc for years but no guarantee they will not decide to eliminate it down the road.

 

Nothing guaranteed except death & taxes! :cool:

[cruisetobeaches]

For those of you who are stockholders - Does the OBC that you've received appear on your annual 1099, along with your dividend earnings?

 

I'm just curious if OBC is considered investment income, in this situation.

 

No, it does not appear on the 1099. Only the dividend.

[golfadj]

Nothing guaranteed except death & taxes! :cool:

 

Very true except that those who dont or cannot work can avoid the tax part.

[Vitamin_Sea]

Very true except that those who dont or cannot work can avoid the tax part.

 

 

Dont ya still have to file something with the IRS?

 

:eek:

[quiltsnh]

Bought at low 30's used it on Princess and 2x on Carnival well worth it....

[Vitamin_Sea]

Bought at low 30's used it on Princess and 2x on Carnival well worth it....

 

cool deal!!

 

trading at $35.55 now

 

Watching it...

[gsu_paintballer]

Very true except that those who dont or cannot work can avoid the tax part.

 

If you own a home, you're paying property taxes.

 

If you buy anything, you're paying sales taxes.

[richard1s]

Get real with CCL as a good investment. In the past year, CCL stock decreased 8% while RCL increased 25%. The appreciation on the RCL stock alone would have a paid a sizeable portion of an entire cruise – plus the OBC to boot! In the past 5 years, 100 shares of RCL stock would appreciated almost $3,400, or about 340%.

 

Just this week, CCL’s own executives claim it could take up to 3 years to restore the brand. CCL is a ship without a rudder, trying desperately to recover from it’s own self-inflicted wounds.

[dclark]

Let's look at the facts:

1) CCL corp profits are down

2) RCL profits are up 19%

3) NCL profits are up 43%

 

Which cruiseline do you want to own a part of?

Also, people fleeing CCL are not just avoiding CCL; they are avoiding Princess and Hal and sailing RCL and NCL.

 

Let's also put this myth to rest- that all CCL ships sail full. Not anymore, not anymore!

CCL is willing to sail less full now, in the hopes that it will help increase the sale price of cabins.

Source: http://news.investors.com/business/112013-679917-carnival-corp-and-royal-caribbean-and-norwegian.htm?ntt=carnival

[golfadj]

Let's look at the facts:

1) CCL corp profits are down

2) RCL profits are up 19%

3) NCL profits are up 43%

 

Which cruiseline do you want to own a part of?

Also, people fleeing CCL are not just avoiding CCL; they are avoiding Princess and Hal and sailing RCL and NCL.

 

Let's also put this myth to rest- that all CCL ships sail full. Not anymore, not anymore!

CCL is willing to sail less full now, in the hopes that it will help increase the sale price of cabins.

Source: http://news.investors.com/business/112013-679917-carnival-corp-and-royal-caribbean-and-norwegian.htm?ntt=carnival

 

thanks for sharing. Had no idea they were not sailing full. Bet their employees who get paid via tips wont appreciate this.

[swedish weave]

Get real with CCL as a good investment. In the past year, CCL stock decreased 8% while RCL increased 25%. The appreciation on the RCL stock alone would have a paid a sizeable portion of an entire cruise – plus the OBC to boot! In the past 5 years, 100 shares of RCL stock would appreciated almost $3,400, or about 340%.

 

Just this week, CCL’s own executives claim it could take up to 3 years to restore the brand. CCL is a ship without a rudder, trying desperately to recover from it’s own self-inflicted wounds.

 

Did you forget to mention the debt/equity ratios of the three companies ?

 

NCLH 1.220 9/30/2013 Which means underwater

RCL 0.9043 9/30/2013

CCL 0.4129 8/31/2013

 

Another item that should influence a decision to buy the stock is that CCL has virtually no restrictions on the OBC while the other two do restrict the use of it. CCL also paid about 3 percent dividend last couple of years.

Edited November 21, 2013 by swedish weave

[golfadj]

Did you forget to mention the debt/equity ratios of the three companies ?

 

NCLH 1.220 9/30/2013 Which means underwater

RCL 0.9043 9/30/2013

CCL 0.4129 8/31/2013

 

Another item that should influence a decision to buy the stock is that CCL has virtually no restrictions on the OBC while the other two do restrict the use of it. CCL also paid about 3 percent dividend last couple of years.

 

That will favor CCL but continuing to have profit decreases is not a favorable sign.

 

Hope new mgt can turn it around.

[swedish weave]

That will favor CCL but continuing to have profit decreases is not a favorable sign.

 

Hope new mgt can turn it around.

 

It seems they have some interesting strategies coming up.

 

By splitting the management teams, they could be aiming for some sort of spin-off. They have a lot more equity than their competition.

 

Also, by holding the line on rates and running ships less than full (if that is true) they may be trying to get their competition to lower their rates into a money losing situation. Good management teams know the costs incurred by themselves and their competition and are possibly using the same tactics WalMart has used to get rid of their competition. Who knows ???? Maybe they will try to absorb some of the other lines.

[Ontario_Cruiser]

Get real with CCL as a good investment. In the past year, CCL stock decreased 8% while RCL increased 25%.

 

I like to Buy low, and sell high and not the reverse. So from this alone, CCL sounds like a much better investment! Add in the lower debt, and CCL looks like it has a stonger upside. Just my 2c, and you will need to make your own stock decisions.

[Goldenfox]

Well...I had a crazy idea of buying it at the $35, get the OBC approved- then sell it.

That way I dont lose much but I do gain the $100 OBC...:eek:

 

Just out of curiosity, why would you spend $3500 +fees to get $100 in OBC? I think I could understand better if you planned to hold on to the stock till you broke even with OBC and dividends.

 

Am I missing something?

[swedish weave]

Just out of curiosity, why would you spend $3500 +fees to get $100 in OBC? I think I could understand better if you planned to hold on to the stock till you broke even with OBC and dividends.

 

Am I missing something?

 

I can possibly explain this. It costs 7 dollars to buy and 7 dollars to sell and you get OBC for your cruise. The amount varies by the length of the cruise. YOur buying and selling costs would be 14 dollars and it is possible the stock may go up while you own it.

 

Personally, if I am going to cruise once or twice a year (or more), I would buy and hold the stock. It pays about 3 percent dividends per year in addition to the OBC, and the OBC will apply on any and all cruises you do with any of the CCL owned companies.

 

When you sell the stock, you will get market price for it.

Edited November 21, 2013 by swedish weave

[kcwingwalker]

I'm no stock picker, but I'd wait until after earnings to buy it. Just a completely useless stock tip on a cruise forum. No big deal.

 

Like!

 

You have no idea who you might be dealing with on a forum. People here might be able to give you some good tips about cruising, but might not be truly knowledge about financial matters. And, you always have to be on the lookout for someone who might think it was funny to give you a bad tip. Unfortunately there are a few trolls around.

[Sparky2]

Dont ya still have to file something with the IRS?

 

:eek:

 

Dividends are taxable (1099), but the OBC is not taxable.

[golfadj]

Just out of curiosity, why would you spend $3500 +fees to get $100 in OBC? I think I could understand better if you planned to hold on to the stock till you broke even with OBC and dividends.

 

Am I missing something?

 

For a one time cruiser who might plan to buy it get the obc and than sell think it it is a mistake as the stock could just as easily go down a few points and than you paid for the obc.

 

If someone cruised say twice a year and could afford to take a risk than I could see buying it.

 

However since it is close to a high and earning are trending downward dont see this as a buy right now.

 

We purchased our 100 shares in 2009 at a very low price and have made good money on paper and at this point only keeping it for the obc as we cruise usually 3x a year.

 

If they eliminated the obc would immediately sell it.

[dclark]

 

Also, by holding the line on rates and running ships less than full (if that is true) they may be trying to get their competition to lower their rates into a money losing situation.

 

You don't understand what they are doing. They are not trying to sell full, they won't drop prices down to the point where they can fill the ship up

Instead, they will set a limit and not sell for less than that. It is possible that they may lose money doing this but that is not the immediate concern. They want the prices of their cruises to increase.

For other cruise companies, this can make their cruises more valuable and allow them to raise rates.

CCL has do something to get rates up asap if they want to increase profitability.Just as I predicted a couple of years ago, they are trapped in a spiral of cutting, which depresses prices, then cutting again, which depresses prices even more and so on. NCL and RCL have more ships coming on line in the Carribean and that means more cabins. More cabins will depress prices.

One surprise from that article that I posted is that things are down at Princess and Hal. I'd think that people leaving CCL would go to those lines, but no, they are hurting, but NCL and RCL are doing great.

You can, of course, wait until the earnings report comes out, but that can work for or against you. If there is a positive earning surprise, the price will go up. I don't think that will happen and if anything, the market thinks profits are down and it is already factored into the stock.

I think the stock is a dog, but if you sail a lot on any of the CCL brands (not just CCCL but Princess, Hal, Seaborn, etc), the obc benefit can make if worth your while, especially since it is not taxed.

[retiring soon]

HI all!

 

golfadj ~ I bought my RCL stock in 2009 too & just sold it since they don't allow much combining of OBC anymore. Over the years I'd gotten about $450 in OBC.

 

A couple of days before my recent Carnival cruise I sold the RCL & bought CCL with some of the proceeds so got $50 OBC already, will get dividends then $250 OBC on a HAL cruise next year. It's already gone up $1 from what I bought it at!

 

I want it for the OBC & if it goes up that's good too!;)

 

~ Jo ~ :)

[1313steve]

Let's look at the facts:

1) CCL corp profits are down

2) RCL profits are up 19%

3) NCL profits are up 43%

 

Which cruiseline do you want to own a part of?

Also, people fleeing CCL are not just avoiding CCL; they are avoiding Princess and Hal and sailing RCL and NCL.

 

Let's also put this myth to rest- that all CCL ships sail full. Not anymore, not anymore!

CCL is willing to sail less full now, in the hopes that it will help increase the sale price of cabins.

Source: http://news.investors.com/business/112013-679917-carnival-corp-and-royal-caribbean-and-norwegian.htm?ntt=carnival

 

Very true. When we were on the Glory in mid-October, the HR person who led our Behind the Fun tour said there were 89 vacant cabins on our cruise. That's about a 6% vacancy rate.

[Vitamin_Sea]

HHmmmm...today 11/21 it closed at $32.88

Surely getting more attractive to buy.

 

previous day 11/20 closed at $35.75

 

:)

[richard1s]

It seems they have some interesting strategies coming up.

 

By splitting the management teams, they could be aiming for some sort of spin-off. They have a lot more equity than their competition.

 

Also, by holding the line on rates and running ships less than full (if that is true) they may be trying to get their competition to lower their rates into a money losing situation. Good management teams know the costs incurred by themselves and their competition and are possibly using the same tactics WalMart has used to get rid of their competition. Who knows ???? Maybe they will try to absorb some of the other lines.

 

An apropos comparison to Wal-Mart; let's just hope that the same business model doesn't destroy the cruise industry like Wal-Mart destroyed small, local businesses in the US and caused the elimination of countless American jobs.