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Article in Wall Street Journal?


MsWitty1

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Don't get the WSJ, but it could have been their stock "Downgrade"

http://www.thestreet.com/s/stock-upgrades-downgrades-from-thestreetcom-ratings/newsanalysis/ratings/10402549.html?puc=_tscrss

 

 

 

Royal Caribbean Cruises (RCL - Cramer's Take - Stockpickr) has been downgraded to hold. The cruise-ship operator demonstrates robust revenue growth, an increase in net income and a reasonable valuation level. However, Royal Caribbean exhibits disappointing return on equity, poor profit margins and lackluster stock performance.

 

Royal Carribean's year-over-year revenue rose by 29.3%, outpacing the industry average. For the fourth quarter of 2007, the company reported net income of $70.8 million, or 33 cents a share, vs. $46.6 million, or 22 cents a share, in 2006.

Return on equity lags the industry average, implying minor weakness in the organization. Royal Caribbean's gross profit margin, at 31.20%, is lower than desirable and has decreased year over year. In addition, the company's net profit margin of 4.80% significantly trails that of its peers.

 

Royal Caribbean had been rated buy since Nov. 6.

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