CCL STOCK

[mcrcruiser]

 Carnival Corp stock is very close to it's yearly low . now that the stock market is pulling back due to 2 months of contracting manufacturing activity in the USA  ,the over all stock market is reacting very negatively  .Today the DOW Jones average was down at one point over 500 points .

 

 Certainly ,hospitality stocks are not a good idea to buy or own  should the USA slide into a recession . It is coming any way because recessions do come,at some point in time .Both Europe & Japans economies are  in trouble & China's economy has  been on a slide with the tariff wars  .This does not bode well  & the cost of oil has also  been moving up in cost . These are all head winds to any hospitality stock 

 

 imo best to sit & watch what price  CCL settles at in several  trading days from now  .Yes the OBC benefits are nice but ,not guaranteed .Each  year the Carnival corp board of directors must vote to continue that benefit .Also .the dividend could be suspect in hard times ,for this cruise corporation  ,The bottom line is be very careful  making any decision to buy 

[ontheweb]

1 hour ago, mcrcruiser said:

 Carnival Corp stock is very close to it's yearly low . now that the stock market is pulling back due to 2 months of contracting manufacturing activity in the USA  ,the over all stock market is reacting very negatively  .Today the DOW Jones average was down at one point over 500 points .

 

 Certainly ,hospitality stocks are not a good idea to buy or own  should the USA slide into a recession . It is coming any way because recessions do come,at some point in time .Both Europe & Japans economies are  in trouble & China's economy has  been on a slide with the tariff wars  .This does not bode well  & the cost of oil has also  been moving up in cost . These are all head winds to any hospitality stock 

 

 imo best to sit & watch what price  CCL settles at in several  trading days from now  .Yes the OBC benefits are nice but ,not guaranteed .Each  year the Carnival corp board of directors must vote to continue that benefit .Also .the dividend could be suspect in hard times ,for this cruise corporation  ,The bottom line is be very careful  making any decision to buy 

It really would not make sense for them to discontinue  the OBC for stock ownership. It would both discourage customers from picking Carnival brand ships and might also lead to a sell off.

[Sea Belle]

What is the dividend amount now?  How does it compare with other cruise lines?   I remember when it was below $30a share but the dividend was very low even with consideration of the OBC. 

[mcrcruiser]

30 minutes ago, Sea Belle said:

What is the dividend amount now?  How does it compare with other cruise lines?   I remember when it was below $30a share but the dividend was very low even with consideration of the OBC. 

At the close today ,Oct 2 ,2019  ,CCL  is at $41.44  per share . The yearly  dividend is $ 2.00 per share paid quarterly .That equates now to a 4.8625 %   yield  .All you do is divide the stock price into the $2.00 yearly dividend to get the yield in  %  terms

 

[fatcat04]

We bought our shares at $21. They paid for themselves long ago. 

[rkacruiser]

What stock goes down will go up if the Company is a quality Company.  CCL has stood the test of time in other market jitters and it will continue to do so now.

 

If the economy and the stock market goes into a recession, watch for opportunities to buy more cruise line stocks of whatever Company and considering selling the position one now holds.  Be mindful, however, of the IRS wash sale rules.  What stock reaches its lowest level for the year may quickly rebound before the IRS rules apply.

[wdw1972]

I think I bought around $30/share, and start the 13th cruise (w/OBC) since then in a couple months, so I'm not worried.  I bought figuring I'd get my $3,000 investment back in OBC so even if the stock tanked I would break even.  So far, I've done better than expected.  In any event, my investment is chump change in the grand scheme of things.

 

Sue/WDW1972

[jb008]

Many of the online brokerages are rolling out fee-free trading (TD Ameritrade and Schwab are already moving forward with it).  Now that you can avoid the trade fee it's easier than ever to dollar-cost-average (DCA) your way into CCL (or any stocks).  If you're worried about short term volatility but interested in buying one option is to start to take a small position (e.g., 10-20 shares) and then keep adding over time.  The DCA method generally helps to smooth out the highs and the lows of getting into a stock.  Also consider leaving dividend reinvestment in place, over time that too can help to average out the cost of the stock position (also worth considering opting OUT of dividend reinvestment if you have stocks that have appreciated substantially since you bought since the dividend reinvestment is then actually pulling your average share price higher over time).

[wyobean]

I guess it depends on your total portfolio. Even if CCL went belly up, 100 shares is small potatoes. We have paid for about half of our investment now through OBC. So, the loss would be minimal.

[faerievert]

If you can't afford to lose the money, you shouldn't buy a stock. Any stock. They're all a gamble. 

 

But I'd still recommend it if you sail on any CCL lines with any frequency and have the cash to invest and the cushion to absorb the (not terribly high for a stock) risk. Better still if you can do so in a Roth retirement account so that all your dividend earnings (and potential growth) will be tax-free. And keep in mind the younger you can make this investment, the more time you'll have to cash in on the rewards.

 

I reckon that most of their OBC-requesting stock-holders are persnickety* frequent-sailers. And I'm betting a most people who have the cash to invest in a hundred shares of stock are not buying bargain basement inside cabins. To not renew the OBC offer would be a really bad PR move likely to offend those who sail frequently and pay higher fare classes. I think they're kind of crazy for having ever offered this perk, but I really feel like they're stuck with it now. 

 

* I'm totally one of those people, so this is no way derogatory! I just submitted my OBC request for our December cruise today.

Edited October 3, 2019 by faerievert

[Gail & Marty sailing away]

13 hours ago, fatcat04 said:

We bought our shares at $21. They paid for themselves long ago. 

I think I collected over 70 times

[barefootguy]

It's certainly the best deal going!! We've always used our credits from Carnival stock & enjoyed them... However, now as 4 star, that $100 credit is worth $200 in the Pinnacle & Tamarind.  Should you plan on cruising any of Carnival lines in the future... Buy now & even if the stock goes high or low, hang on in the end you'll have a wonderful time dining on board!

 

Heading out on the K-dam in Nov. & will be dining on our credits!  Makes you love the steak & lobsters even more when they're free...

Edited October 3, 2019 by barefootguy

[fatcat04]

My hubby, who is a 20 year industry veteran, always says "stocks are on sale today!" when the market turns down. 🤣Gotta stay positive. 

[drowelf]

We keep our 100 shares of CCL (and RCL) in our DWs 401K account. We initially purchased them long ago and just let them sit and accrue dividends and collect OBC as we cruise. They are in the DW accounts as I don't ever expect to take a cruise without her, but she sometimes does girlfriend cruise, so that way she can apply any OBC to her alone. 

 

And remember, you have to have at least 100 shares to qualify for the OBC. 

[canadianbear]

5 minutes ago, drowelf said:

We keep our 100 shares of CCL (and RCL) in our DWs 401K account. We initially purchased them long ago and just let them sit and accrue dividends and collect OBC as we cruise. They are in the DW accounts as I don't ever expect to take a cruise without her, but she sometimes does girlfriend cruise, so that way she can apply any OBC to her alone. 

 

And remember, you have to have at least 100 shares to qualify for the OBC. 

That’s exactly what we did when we purchased the CCL stocks years ago.  I cruise a bit more than hubby.    We are Canadian and the investment was put in my retirement plan.  Has worked out great so far.  It was purchased as a long term investment and is a bonus having the OBC.  

[rkacruiser]

And dividend reinvestment is a winner when one is a long time owner of the stock.

[Mary229]

I own 200 shares of CCL but I am happy to book an inside room for a short trip😊

 

The OBC is a great perk. If the the stock tanks tanks they are likely to try to juice earnings and that could result in some great bargain sailings. Win if they lose, win if they win 

[HappyInVan]

2 hours ago, Mary229 said:

 

The OBC is a great perk. If the the stock tanks tanks they are likely to try to juice earnings and that could result in some great bargain sailings. Win if they lose, win if they win 

 

 

I wonder how this works? The stock market would tank in a recession,. Demand for cruising falls. Cruise companies cut prices. Resulting in lower earnings and lower dividends?

 

 

[Mary229]

8 hours ago, HappyInVan said:

 

 

I wonder how this works? The stock market would tank in a recession,. Demand for cruising falls. Cruise companies cut prices. Resulting in lower earnings and lower dividends?

 

 

During the last recession, the big one😉 I bought new cars at excellent prices and shiny new cruises at bargain rates.  I actually think that was when CCL started cutting back on amenities on many of their lines, amenities which never returned.  I have owned the stock for many years and I don't see them cutting either but they might reduce the amount or the growth of one or the other. 

[avian777]

On 10/3/2019 at 10:10 PM, HappyInVan said:

 

 

I wonder how this works? The stock market would tank in a recession,. Demand for cruising falls. Cruise companies cut prices. Resulting in lower earnings and lower dividends?

 

 

Suggest you consult a competent wealth manager for investment advice.  The questions you asked are so basic that it appears you do not have even an elementary understanding of business and finances, so IMO you need more (and better) advice than you'll find on CC.

[HappyInVan]

8 hours ago, avian777 said:

Suggest you consult a competent wealth manager for investment advice.  The questions you asked are so basic that it appears you do not have even an elementary understanding of business and finances, so IMO you need more (and better) advice than you'll find on CC.

 

Do you know what are the characteristics of a successful con game?

 

The victim enjoys being con. “I Believe!” Will recruit others. “I heard that so-so made a fortune and retired at 50!!!”

 

What the characteristics of a great con man? The victim will continue to luv the con man after the con game is exposed. “Yeah, he was ripping me off. But, he was such a great guy!”

[avian777]

4 hours ago, HappyInVan said:

 

Do you know what are the characteristics of a successful con game?

 

The victim enjoys being con. “I Believe!” Will recruit others. “I heard that so-so made a fortune and retired at 50!!!”

 

What the characteristics of a great con man? The victim will continue to luv the con man after the con game is exposed. “Yeah, he was ripping me off. But, he was such a great guy!”

❓❓❓

[doublebzz]

On 10/2/2019 at 10:29 PM, jb008 said:

Many of the online brokerages are rolling out fee-free trading (TD Ameritrade and Schwab are already moving forward with it).  Now that you can avoid the trade fee it's easier than ever to dollar-cost-average (DCA) your way into CCL (or any stocks).  If you're worried about short term volatility but interested in buying one option is to start to take a small position (e.g., 10-20 shares) and then keep adding over time.  The DCA method generally helps to smooth out the highs and the lows of getting into a stock.  Also consider leaving dividend reinvestment in place, over time that too can help to average out the cost of the stock position (also worth considering opting OUT of dividend reinvestment if you have stocks that have appreciated substantially since you bought since the dividend reinvestment is then actually pulling your average share price higher over time).

Excellent advice.  I recently added 25 shares to my position when the stock fell below $41.  From an investment standpoint, CCL stock is probably never going to make you rich but sitting on a 4.5%+ dividend and the possibility of a capital gain is an appealing proposition in my opinion.  If you cruise HAL with any frequency, the stock OBC provides leverage against downward  movements in the stock.

[johnmik1]

I bought my first 100 shares at $19 and have gotten over $5000 back in OBC and dividends.I have bought 400 more shares over the last 2 months as the price has been attractive.I may buy some more this week.

[kazu]

I bought the obligatory 100 shares.  I literally told my Financial Planner that this small percentage of my portfolio is not open to discussion.

 

I was told it was not a great investment.  Let’s see, it’s still higher than my original cost, I get tax free OBC in US DOLLARS (check our exchange rate right now).  And the dividends have been fair.

 

I am a knowledgeable investor but part of the reason for buying this stock was the OBC. It adds up for us and I am way ahead of the game.

 

Sign me up as one Canadian who is a happy camper (not to fellow Canadians - put it in your RSP or CRA will suck up the dividends)