RCL Stock

[Cavmedic]

Yes. The margin requirements are if you are basically using your funds as collateral.

 

So say you want to purchase 100 shares but are only funded for 50, you can make the purchase for 100 but there are requirements. Its basically taking out a loan.

 

If you want to buy 10 shares and have funds for 10 shares you are not using margin.

[cruisinfanatic]

28 minutes ago, Jimbo said:

Excellent, so once you put in the quantity in your picture, the review order lights up in green, once you do that do you get the same yellow caution words about margin special requirements that I'm seeing, do you just disregard that?

Means nothing unless you are borrowing (Margin) to buy it

[ed01106]

If you are not buying on margin the message is not relevant to you.  
 

Typically you are allowed to borrow 50% and buy on margin.  So to buy 10 shares of stock at $20 you would need to have $100 of cash and can borrow $100.  Highly volatile stocks some times have special margin requirements, limiting how much you can borrow to 30 or 40%.   

[Cavmedic]

Also, I say to use limit as you seem to have a particular price point. You set the limit.

 

Market price has its uses but fixating on a specific price isn't one of them. 

[cementhands]

What’s the bottom? Seems like NCL is getting hit the worst. At what price is bankruptcy a possibility. Risk factors. Will cruise resume this fall next year? Canada not allowing cruise ships will effect Alaskan and New England cruise. Don’t USA cruises have to visit international port each trip except Hawaii around island. Many factors including other countries reaction.

[Mapleleafforever]

3 minutes ago, cementhands said:

What’s the bottom? Seems like NCL is getting hit the worst. At what price is bankruptcy a possibility. Risk factors. Will cruise resume this fall next year? Canada not allowing cruise ships will effect Alaskan and New England cruise. Don’t USA cruises have to visit international port each trip except Hawaii around island. Many factors including other countries reaction.

Bankruptcy is a real possibility for all the lines right about now. And I'm not sure that CC is the best place to come for investment advice lol

 

Just imagine, all the cruise lines go bankrupt and open under a different name....and everyone's statuses are set back to zero......ugh

[ed01106]

12 minutes ago, cementhands said:

What’s the bottom? Seems like NCL is getting hit the worst. At what price is bankruptcy a possibility. Risk factors. Will cruise resume this fall next year? Canada not allowing cruise ships will effect Alaskan and New England cruise. Don’t USA cruises have to visit international port each trip except Hawaii around island. Many factors including other countries reaction.

The stock price dropping won’t cause bankruptcy.  That is a complete reversal of cause and effect.  Bankruptcy will happen if the company runs out of money.  The low stock price is a result of people being concerned about bankruptcy, but a low stock price won’t cause bankruptcy and a high price won’t prevent it.  

 

(That is a bit of an oversimplification as stock price can affect the companies ability to raise cash by issuing stock.  But in general risk of. bankruptcy drives the price, not the price drives bankruptcy) 

[yogimax]

27 minutes ago, Mapleleafforever said:

Bankruptcy is a real possibility for all the lines right about now. And I'm not sure that CC is the best place to come for investment advice lol

Absolutely correct!

 

CC is not the best place for either investment advice or to learn the ins and outs of trading.

[Biker19]

It seems like the cruise industry is not part of the stimulus package being drafted so RCL stock is down 8%+ while the overall market is up 3%+.

Edited March 17, 2020 by Biker19

[Mapleleafforever]

1 minute ago, Biker19 said:

It doesn't seems like the cruise industry is not part of the stimulus package being drafted so RCL stock is down 8%+ while the overall market is up 3%+.

And I don't feel as though they should be seeing as they don't pay any US taxes. Royal is based in Liberia....does Liberia have enough to bail them out??

[ALWAYS CRUZIN]

I bought RCL stock when the marked plumited several years ago. It cam way up after that. Today I just purchased 100 for $28.00. To me that is a great price.

[Ocean Boy]

Just now, ALWAYS CRUZIN said:

I bought RCL stock when the marked plumited several years ago. It cam way up after that. Today I just purchased 100 for $28.00. To me that is a great price.

Time will tell.

[ALWAYS CRUZIN]

Just now, Ocean Boy said:

Time will tell.

As with any stock purchase. True!

[Jimbo]

$28 is good, but I'm still waiting for it to go lower............. :)

 

It's at $26.something.........and dropping

 

Carnival at $12 something and still dropping

Edited March 17, 2020 by Jimbo

[Ocean Boy]

Just now, Jimbo said:

$28 is good, but I'm still waiting for it to go lower............. 🙂

26 right now with a downward trend.

[ALWAYS CRUZIN]

The last time I bought Royal it was $100 a share. Yes that was some time back. Sold it 3 months later for a $1,700.00 gain. I will just sit now. See what happens this time next year when I hope all this virus stuf is just about over and business for everyone comes back to almost normal. I think our economy being so strong certainly helps the bottom line. If the economy was week when this hhit. it would be far worse.

[Baron Barracuda]

24 minutes ago, Biker19 said:

It seems like the cruise industry is not part of the stimulus package being drafted so RCL stock is down 8%+ while the overall market is up 3%+.

 

And yet a few minutes ago at his daily press briefing Trump spoke of how the cruise industry was just recently setting records, is a great industry and we have to help them.  "They will be taking care of people for years to come and paying tremendous taxes, tremendous taxes".  Either he's unaware of the cruise lines current tax situation or maybe paying US taxes will be the quid pro quo for obtaining aid.

 

By the way Merrill Lynch cut RCL to underperform (sell) this morning and reduced price target to $25.  No one on Wall St seems to fear bankruptcy though.

[npcl]

1 hour ago, Mapleleafforever said:

Bankruptcy is a real possibility for all the lines right about now. And I'm not sure that CC is the best place to come for investment advice lol

 

Just imagine, all the cruise lines go bankrupt and open under a different name....and everyone's statuses are set back to zero......ugh

They most likely will not close and open under a different name.  If they were to go BK in a way that impacts customers it would probably go all the way to sale of assets.

 

Most likely a BK will be a financial restructuring, where the shareholders  get wiped out, the debt holders get equity in return for the their debt, new builds get canceled or delayed, but the customers remain intact (deposits, FCC's).

[npcl]

1 minute ago, Baron Barracuda said:

 

And yet a few minutes ago at his daily press briefing Trump spoke of how the cruise industry was just recently setting records, is a great industry and we have to help them.  "They will be taking care of people for years to come and paying tremendous taxes, tremendous taxes".  Either he's unaware of the cruise lines current tax situation or maybe paying US taxes will be the quid pro quo for obtaining aid.

 

By the way Merrill Lynch cut RCL to underperform (sell) this morning and reduced price target to $25.  No one on Wall St seems to fear bankruptcy though.

Any kind of bailout to the cruise industry would have to go through congress where it would encounter problems.  At most they might get a lender of last resort treatment, probably in a BK.  That would help the portions of the industry that is actually impact  the US,  would keep them running, but would not protect shareholders.

[Mapleleafforever]

4 minutes ago, npcl said:

They most likely will not close and open under a different name.  If they were to go BK in a way that impacts customers it would probably go all the way to sale of assets.

 

Most likely a BK will be a financial restructuring, where the shareholders  get wiped out, the debt holders get equity in return for the their debt, new builds get canceled or delayed, but the customers remain intact (deposits, FCC's).

It's all speculation at this point. These are crazy, unprecedented times. 

[npcl]

Carnival bonds have been down graded to BBB the 10/15 bonds are now at 13.122% YTM up from around 3% a week or so ago.

 

While longer term bonds are not as high, they are now all trading higher than original coupon price.  Considering that the 10 year is at less than one percent, the Bond market is certainly not positive on the future of CCL

[Mapleleafforever]

3 minutes ago, npcl said:

Any kind of bailout to the cruise industry would have to go through congress where it would encounter problems.  At most they might get a lender of last resort treatment, probably in a BK.  That would help the portions of the industry that is actually impact  the US,  would keep them running, but would not protect shareholders.

As it should. I will never ever see the point of bailing out a business that pays no US taxes and doesn't adhere to US labor laws. 

[Mapleleafforever]

10 minutes ago, Baron Barracuda said:

 

And yet a few minutes ago at his daily press briefing Trump spoke of how the cruise industry was just recently setting records, is a great industry and we have to help them.  "They will be taking care of people for years to come and paying tremendous taxes, tremendous taxes".  Either he's unaware of the cruise lines current tax situation or maybe paying US taxes will be the quid pro quo for obtaining aid.

 

By the way Merrill Lynch cut RCL to underperform (sell) this morning and reduced price target to $25.  No one on Wall St seems to fear bankruptcy though.

LOL yup 

[Mapleleafforever]

16 minutes ago, ALWAYS CRUZIN said:

The last time I bought Royal it was $100 a share. Yes that was some time back. Sold it 3 months later for a $1,700.00 gain. I will just sit now. See what happens this time next year when I hope all this virus stuf is just about over and business for everyone comes back to almost normal. I think our economy being so strong certainly helps the bottom line. If the economy was week when this hhit. it would be far worse.

Me thinks you're in for a bit of a surprise in the coming months. 

[npcl]

To put the bond market in perspective RCL  11/22 bonds are at YTM 16.791, CCL 10/15/20 now at 13.122 YTM

 

Starting to look like the bond market is expecting default.