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Shareholder benefit changes


Shari

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On 6/10/2019 at 3:54 PM, Clear Laker said:

At 123.55 per share, 100 shares min.  You are not going to buy RCL stock for the $100 discount for a 7 night cruise.  But now it is at least a benefit that has some value vs. being non combinable in the past. 

I wouldn’t dismiss it so quickly.  Most of us seem to be pretty positive about RCCL so we in general like the direction they are heading, and probably assume   the stock will go up.  

If you put in the $12K and say you cruise 5x per year and get $500 OBC that’s a 4% return regardless of where the stock goes.

I’m only in the 3x per year club but I’m going to buy enough to get me to the 100 share mark.

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12 hours ago, Larry Muster said:

I wouldn’t dismiss it so quickly.  Most of us seem to be pretty positive about RCCL so we in general like the direction they are heading, and probably assume   the stock will go up.  

If you put in the $12K and say you cruise 5x per year and get $500 OBC that’s a 4% return regardless of where the stock goes.

I’m only in the 3x per year club but I’m going to buy enough to get me to the 100 share mark.

And that's before you consider the dividend!  What is it these days 2.5%?  That's another ~$300 in your pocket each year to reduce the cost of your trips.

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On 6/11/2019 at 10:24 PM, Larry Muster said:

I wouldn’t dismiss it so quickly.  Most of us seem to be pretty positive about RCCL so we in general like the direction they are heading, and probably assume   the stock will go up.  

If you put in the $12K and say you cruise 5x per year and get $500 OBC that’s a 4% return regardless of where the stock goes.

I’m only in the 3x per year club but I’m going to buy enough to get me to the 100 share mark.

And it's tax free, since it's a rebate and not a dividend ? 

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1 hour ago, Nicolas LaBarre said:

Can you book with Travelocity and still receive this benefit?

It's irrelevant who you book with (although I don't recommend using Travelocity for booking any cruise) to get this discount. It's rarely combinable with any other discount so not worth it

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2 hours ago, Matt said:

It's rarely combinable with any other discount so not worth it

I was wondering if you've seen anything from RCI about making the discount more useful.  The original poster implied as much but I don't know what the language in the provided link used to say.  Not that it's relevant to me yet, but I've been considering RCI the next time I have the ability to do some investing.

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I always submit the forms for the Shareholder Benefit and let them tell me yes or no.  I'm batting 50% since buying RCL stock even though I expected them to say no most of the time.  But this graphic shows why I really bought the stock (past performance is no guarantee of future results).

9764751_ScreenShot2019-06-18at6_16_47PM.thumb.png.e4976456e3af24cfeda50357f7984e7f.png

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This is potentially a dumb question, but what's to stop anyone from buying the stock four weeks before the sailing date, sending in the form, then dumping the stock after the cruise? For $100 in OBC, that's a guaranteed annualized return rate of almost 10%, tax-free.

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8 hours ago, SSMEX said:

This is potentially a dumb question, but what's to stop anyone from buying the stock four weeks before the sailing date, sending in the form, then dumping the stock after the cruise? For $100 in OBC, that's a guaranteed annualized return rate of almost 10%, tax-free.

Pretty much nothing other than the risk of the stock price decreasing and being valued less than it was purchased for.  Also there is typically a fee charged when making a transition by the broker that holds the stock for you, so you may have to pay that when you purchase and liquidate the stock.  Plus Royal may not even allow the OBC redemption depending on the cruise fare booked -- there are some rates and discounts that aren't able to be combined with the stockholders OBC.  There's also the opportunity cost of having ~ $12,000 tied up (current stock price as of June 18 is $122.63).  If the stock happens to appreciate in those weeks that you hold it, you're also going to be taxed on the gains at the short-term capital gains tax rate.

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  • 2 weeks later...

Does doing away with the non-combinable restriction mean I won’t lose some of the benefit due to receiving a bonus while booking?

In other words, when I book a balcony and receive a $75 bonus, my Shareholder Benefit is reduced to $25. (Total $100).

My request for Shareholder Benefit has never been denied...just reduced as indicated above. Applying for it is easy...just print out the request form, fill in the info, and email the form and a copy of your current brokerage account page (black out your account number) showing 100 or more shares of Royal Caribbean stock. Just don’t procrastinate...submit it within the acceptance window. Easy peasy.

Also, as mentioned above...Royal Caribbean stock pays dividends. And the cruising industry as a whole does not appear to be slowing down anytime soon. As with all such investments...risk is a factor. Happy cruising!

 

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  • 7 months later...

Share prices down as RCCL is reporting earnings tomorrow.(I am hoping prices go down as I have 3 sailings within the next 2 years. )  Seems like a buying opportunity to me @Carol Kemp I look forward to your experience when we get a handle on this virus. Here's hoping we combat this quickly so we can breath a sigh of relief. Sad that  a black swan event is happening but I am now going to buy, buy, buy!

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