RCL Stock -- a bargain!

[claud925]

do you have to own stock before booking?

 

Nope - you just have to prove you own them at the time of sailing.

 

I've had my upcoming cruise for this May booked since last August, and just bought my stock last week.

[CathyCruises]

I have a different take. I bought the stock with IRA money, enjoyed the OBC, and will just let it sit there, maybe for years. Give me a break, it was $3500--hardly going to have a major effect on my future one way or the other. I love getting something "free" even it it really isn't. The stock market is a gamble and most of us have to look at it long term to keep from going crazy with day to day fluctuations.

 

Personally I was delighted to hear about the perk--first time I've ever gotten one from a stock I've owned. Now I went and booked my next cruise on Oceania-hmm, wonder if THEY offer an OBC?? :rolleyes:

 

Cathy

[RodPat]

Dear Pat:

 

It's great to see you out there. You're doing a repositioning cruise aboard Constellation next fall. Is that a TA. We were on the TA aboard Millennium in December with David, Eluned, Donna, Justin, George, MaryBeth, Pam and Todd. What a wonderful time.

 

Regarding the point at hand: If the stock continues to drop, and reaches into the teens, I may just have to breakdown and buy. We'll see, but for now CASH is king.

 

Happy cruising to all!

 

Bob

 

Bob, This Constellation cruise is a repo from NJ to Florida via the southern caribbean. Constellation is our favorite ship. Believe me if this stock goes into the teens I will buy more. I was sorry I only bought 100 shares at $24. The stock was up in the $50 range not the long ago. If I had bought some extra I could have sold the extra and kept 100 shares anyway. I agree cash is king but I can't live forever so for now it is have a good time cruising.

Pat

[SpecialBarb]

My niece told me about RCL stock's low price. So, today we put in a 100 share order... probably effective tomorrow. I'll be watching for the price. Now we are looking forward to the $250 on each of our back-to-back Mercury cruises in Australia.

[Gonzo70]

Personally I was delighted to hear about the perk--first time I've ever gotten one from a stock I've owned. Now I went and booked my next cruise on Oceania-hmm, wonder if THEY offer an OBC?? :rolleyes:

 

Cathy

 

You oughta get some Wrigley Gum stock (WWY). All you need is one share and you get a case of gum delivered to your home every year as an Xmas gift!

 

I also got a voucher good for two free coffees back when I owned Starbucks; they sent that with their annual report.

[gillianrose]

So - we should be buying BRK.B (currently trading at over $4,200 a share) instead? Hang on - let me jump on that bandwagon . . .

 

Gee, I guess I should also have had a V-8.:rolleyes:

 

As I said, we bought on Day 1, not recently :).

[marle7]

My niece told me about RCL stock's low price. So, today we put in a 100 share order... probably effective tomorrow. I'll be watching for the price. Now we are looking forward to the $250 on each of our back-to-back Mercury cruises in Australia.

 

Yes, we did too. Neither my husband (an accountant) or our broker could find any good reason for the stock dip.

[Canuker]

Do the math.

A 7 night cruise gets you an on-board credit of $100 per cabin (i.e. $50 each).

 

Say you cruise with RCCL or its sister companies once a year.

 

Buy the 100 shares for - say - $33 each = $3,300

 

100 / 3,300 = 3%. That's not a bad equivalent to a dividend rate (plus you get dividends, too)

 

But what percentage must the shares drop before you loss the benefit?

The same - 3%. Or $1 a share.

So you're exposure to whether you'll come out ahead is very narrow.

 

The comments above about the current share market conditions are relevant. Is the RCCL share price currently a bargain? Well, if recession hits the consumer, what's one of the first things folk cut back on?

Yep, travel. Vacations.

Bottom line: would I spend $3,300 in hopes of gaining $100? I don't think so. I'd rather be able sleep comfortably in my bed at night.

 

About all it's worth are the bragging rights. Not sure that's a shrewd move, either.

[negc]

Do the math.

A 7 night cruise gets you an on-board credit of $100 per cabin (i.e. $50 each).

 

Say you cruise with RCCL or its sister companies once a year.

 

Buy the 100 shares for - say - $33 each = $3,300

 

100 / 3,300 = 3%. That's not a bad equivalent to a dividend rate (plus you get dividends, too)

 

But what percentage must the shares drop before you loss the benefit?

The same - 3%. Or $1 a share.

So you're exposure to whether you'll come out ahead is very narrow.

 

The comments above about the current share market conditions are relevant. Is the RCCL share price currently a bargain? Well, if recession hits the consumer, what's one of the first things folk cut back on?

Yep, travel. Vacations.

Bottom line: would I spend $3,300 in hopes of gaining $100? I don't think so. I'd rather be able sleep comfortably in my bed at night.

 

About all it's worth are the bragging rights. Not sure that's a shrewd move, either.

 

Then again, if you cruise frequently (even two or three times a year) the OBC can add up and if you aren't looking to cash in the stock in the foreseeable future, it's value may, at some point, return to its previous levels. As was mentioned, the cost of this purchase, if a person has the discretionary income to afford it, is not likely to affect their lifestyle. The quarterly dividend has been paid regularly for years and is an added benefit, especially if you reinvest those dividends and do some dollar averaging.

Actually, I have seen some studies that contrary to what would seem obvious, vacations are one of those things that suffer less in recessionary times, so the cruise industry may suffer less from a poor economy than we think.:)

[tcdtcd]

The stocks of Royal Carribean and Carnival are being pulled down by analysts' downgrades based on a looming recession and what that will do the pricing power of the cruise lines. If you look at their financials, cruise companies make a profit, but not an overly large profit.

 

I never confuse investing with emotion. Yeah, I love cruising and I also love putting my money where it will do the most good.

 

Not an overly large profit?? Huh??? Look at CCL (and to a lesser extent RCL) and compare it to any leading pharmaceutical company!! You'll be surprised that the profit margins on CCL are much fatter than those companies/industries many like to complain about.

[63galaxie]

We are "newbies" in the stock world. Where would one go to purchase the stocks? Will there be a fee to buy them? How much onboard credit would be get for a seven day cruise? Where do I go to find how much the stock is worth (on a day-to-day basis)?

Please help me with "Stocks 101."

Thank you.

[MNrunner]

If you haven't traded stocks before, first get some information--head over to www.fool.com , click on the investing tab and read away.

 

Mnrunner

[claud925]

As I said, we bought on Day 1, not recently :).

 

And - on Day 1 - did that BRK stock cost the same to buy as what RCL is currently trading for? Because RCL stock (and its present cost/value) is the subject of this thread.

 

My portfolio contains stock that has performed as well as BRK over the years, but I wouldn't bring that up on this board, since it's irrelevant to CC posters.

[gillianrose]

And - on Day 1 - did that BRK stock cost the same to buy as what RCL is currently trading for? Because RCL stock (and its present cost/value) is the subject of this thread.

 

1. No, of course BRK.B did not cost the same as RCL, but the SHARE PRICE of a stock is not the way to VALUE that stock (company). :rolleyes:

 

Penny stocks, and/or stocks that have deeply declined in value, as one example, often end up de-listed and disappear from the stock market altogether. (RCL is, of course, not a penny stock; I'm just making a point about the PRICE of a stock relative to its VALUE.)

 

My portfolio contains stock that has performed as well as BRK over the years, but I wouldn't bring that up on this board, since it's irrelevant to CC posters.

 

No, it is not irrelevant, and who are you to say that it is? We all offer our own opinions in our posts. That's what forums are for.

 

Comparisons are made on these boards all the time.

 

We compare cruise lines, ships within those lines or across lines, tables within restaurants, ports of call, hotels, ATM's, currency, airlines, lap dogs sitting in the restaurant, martinis, hygiene, attire, even whether a land-based trip to a particular region beats a cruise to that area. It's ALL relevant.

 

Personally, unless the advantage of a cruise stock is OVERWHELMINGLY favorable—i.e. perhaps when we retire and IF we decide to take 10+ cruises a year ON THE SAME CRUISE LINE or its affiliates and I am fairly certain that the shipboard credits will continue for the entire duration of my stock ownership—then I prefer to invest in stocks that provide me with a good return regardless of shareholder benefits and which do not entice me to spend additional money. We spend our money as we choose.

 

I don't want to feel as though the stock ownership in essence owns me in the sense that my ownership of that stock makes me more likely to cruise on a particular line. And that is why the shareholder benefit is there, of course.

It's great for many people, and I hope the benefit stays there, but it does not necessarily make the stock a bargain for many people in comparison to other things they might do with their money. (First and foremost, fund all your retirement accounts and DON'T take a cruise until you can pay for it in full before you take it!)

 

I, like others, would like to point out that merely because a stock price has dropped does not mean it is a BARGAIN. It may be and it may not be, but a wise investor looks at a great deal more than share price/drop to determine the value of investing in a stock.

[negc]

We are "newbies" in the stock world. Where would one go to purchase the stocks? Will there be a fee to buy them? How much onboard credit would be get for a seven day cruise? Where do I go to find how much the stock is worth (on a day-to-day basis)?

Please help me with "Stocks 101."

Thank you.

 

Please don't come to a cruise board for financial advice. Seek out a qualified financial planner or investment counselor. Most of us who own RCCL stock have purchased it, not for its value as an investment vehicle, but for the cruise benefits that come from owning 100 or more shares, and few of us are qualified to give anyone responsible financial advice.:)

[Gonzo70]

We are "newbies" in the stock world. Where would one go to purchase the stocks? Will there be a fee to buy them? How much onboard credit would be get for a seven day cruise? Where do I go to find how much the stock is worth (on a day-to-day basis)?

Please help me with "Stocks 101."

Thank you.

 

You can purchase stocks on your own by opening an online account (i.e. via tdameritrade, e-trade etc.). If you do that, it only costs about $7 to $11 per trade, but you are pretty much on your own. If you are new to it, you may be better off going through a stock broker (likely your bank can do this for you or recommend someone). The fees however are much higher (but you will have access to someone who is knowledgeable about the market for advice and assistance).

 

For a 7 day cruise you would receive $100 of On Board Credit if you purchased at least 100 shares of RCL stock.

 

You can find out the stock price in several ways; most newspapers list it in the business section and several web sites have areas you can check stock prices (i.e. google, yahoo, msn etc.).

 

If you are not knowledgeable about stocks, it would not be a wise idea to purchase 100 shares of RCL just to get credit for a 7 day cruise. It is a huge perk to people who sail often and end up receiving thousands of dollars in on board credit over time, but if you try to do this just for a cruise or two, you may end up losing money.

[Hplar]

Hi RKSpicy !

 

Here are a couple of links that will answer your questions. Enjoy your Cruise !

 

http://www.rclinvestor.com/phoenix.zhtml?c=103045&p=irol-shareholderbenefit (FAQ)

 

http://media.corporate-ir.net/media_files/irol/10/103045/ShareholderBenefitLetter.pdf (Benefit Letter)

Hi Andy

 

I bought stock today and faxed a copy of my order to RCCL. How or when do I tell if the OBC has been applied?

[Rouge Wave]

You can purchase stocks on your own by opening an online account (i.e. via tdameritrade, e-trade etc.). If you do that, it only costs about $7 to $11 per trade, but you are pretty much on your own. If you are new to it, you may be better off going through a stock broker (likely your bank can do this for you or recommend someone). The fees however are much higher (but you will have access to someone who is knowledgeable about the market for advice and assistance).

 

For a 7 day cruise you would receive $100 of On Board Credit if you purchased at least 100 shares of RCL stock.

 

You can find out the stock price in several ways; most newspapers list it in the business section and several web sites have areas you can check stock prices (i.e. google, yahoo, msn etc.).

 

If you are not knowledgeable about stocks, it would not be a wise idea to purchase 100 shares of RCL just to get credit for a 7 day cruise. It is a huge perk to people who sail often and end up receiving thousands of dollars in on board credit over time, but if you try to do this just for a cruise or two, you may end up losing money.

 

For the small investor...... Use ShareBuilder... It is easy to use, very inexpensive and its great to dollar cost average in. Sure it is not the way to go for "real" traders but having some fun, learning about how it all works.. and yes investing, it is great.

 

By the way, one of Buffett’s views is to buy stock in companies you like, as in you "like" them , "like" the products, use the products of.

 

Why not invest your assets in the companies you really like? As Mae West said, "Too much of a good thing can be wonderful".

Warren Buffett

 

Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

Warren Buffett

Thus I own RCCL, CCL , Valero, Costco and will keep all for the long term.

[63galaxie]

Thanks for everyone's comments. Karen

[janetz]

For those interested, RCL is as low as I've seen it - currently trading @ $32.70 .... wish I'd waited a few days - I bought last week @ $34.00.:rolleyes:

 

Still a darn good bargain, however. Last February it was over $46. AND I get to use my first SBC this May - $250 on a 16-nighter. Very exciting.:)

 

So for those contemplating - now seems a good time to jump in (no pun intended).

 

 

Bought in 2000 at 12.50 :p

[BBsails]

According to the RCL website, the stock is trading at $37.34 as of 01/23/08 4:06 p.m. ET.

[Gonzo70]

According to the RCL website, the stock is trading at $37.34 as of 01/23/08 4:06 p.m. ET.

 

 

It has gone up about 15% in the past few days, so be on the lookout for a pullback. It annouces its earnings next week, so will potentially remain rather volatile for the next several trading days.

[Andy]

Hi Andy

 

I bought stock today and faxed a copy of my order to RCCL. How or when do I tell if the OBC has been applied?

 

Hi Hplar !

 

If you have a Travel Agent, ask them to confirm it for you. It will show on the "Booked Confirmation Invoice - Guest Copy". Perhaps they can get you a copy of your booking. If you do not have a Travel Agent, call Celebrity, and ask them if they will send you a copy.

 

If all else fails, you can try emailing shareholderbenefit@rccl.com . Hopefully, they will send you an email confirming your credit was applied.

 

Enjoy your Cruise !

[lisiamc]

Bought in 2000 at 12.50 :p

 

Are you trying to make me cry? I bought in 2005 for $41! :eek: (This is why I normally steer clear of the stock market! The OBC is still a good deal, though, even at the price I paid.)

 

Lisa

[Gonzo70]

Wow,

 

I got a fast response; I just e-mailed confirmation of my RCL stock to shareholderbenefit and received an e-mail confirmation that the OBC had been applied to my cruise in less than 24 hours! I am very impressed by how fast they processed my request (and pleased with the recent jump in the stock price as well).