Jump to content
Royal Caribbean Blog

RCCL Stock purchase ???


Recommended Posts

Do you own the RCCL stock or are you familiar with the benefit of ownership being a frequent cruiser? I am requesting your education pertaining to this, it is so sad what is going on with the virus, but this presents a buying opportunity for me to maybe snatch up the 100 shares.  Tying up those monies leaves me to question any additional benefits? Thanks so much! Pro and Con responses are really appreciated. 

Link to post
Share on other sites

Here's everything you need to know about the shareholder discount: https://www.royalcaribbeanblog.com/2019/06/26/all-about-the-royal-caribbean-shareholder-discount

In short, I would not recommend buying stock simply to get the discount.  But if you see a good investment, then the shareholder discount is an added bonus.

Link to post
Share on other sites
  • 2 weeks later...

I'm seriously considering buying stock but I'm going to wait until the market starts swinging back up.  I don't care if I miss the cheapest price and I'm not buying while things are still so in flux.  We could see a halt of all ships everywhere in the next few days.  That's sure not going to help the stock price!

Incidentally, if a ton of people purchase 100 shares as a result of this coronavirus, they might have to cut back the benefit or require more shares to get OBC.  It's kind of like the ever increasing number of Diamond members, at some point, you can't keep offering the same benefits.  Right now for the price of a single cruise, I can theoretically get $100 OBC for every future cruise.  That's just not sustainable!

Link to post
Share on other sites

@Matt Correct me if I'm wrong ... a friend wants to buy shares in Royal Caribbean. I personally have a hundred shares. According to Royal Caribbean, that the benefit is limited to one credit per cabin per 100 shares on each sailing, which means that if you are on a 7-Day cruise and own 100 shares or 200 shares or 300 shares, you are only going to get a $100 on-board credit. Is this correct?

Link to post
Share on other sites
On 3/13/2020 at 10:28 AM, Bean79 said:

Yeah it looks like I jumped in too soon on March 6th and 9th. First bought 62 shares at $81.74, then bought 39 shares at $63. :52_fearful:

That's the way the market works. Back in the Oughts I bought it at $44 and sold at $8.  Then I bought it again at $71 and watched it rise to $135...and then bought more at $76 on the way down.  Now it's at $30ish.  Next week I'll likely buy more to dollar-cost-average, but more importantly I believe in RCL and that they will get through this crisis, and while I can't cruise in the near future this one a way I can support the company and it's employees. 

Link to post
Share on other sites

This is such a trying time but I agree so much with @bcarney, I am in it for the long hall so as bad as it has been I have averaging down like a crazy person. I believe in this product and just know we will weather this storm. I feel so strongly and my feelings are supported by most here on the blog with a special shout out to the efforts of @Matt & the amazing @AnnetteJackson to include the MEI team of Sharla & Kelley too. Be safe everyone, this too shall pass, let's try to be as positive as possible. We are blessed to be here discussing cruises & vacations, some are much less fortunate, all the best my friends. :)

As an aside, I sent my electronic paperwork in for all of my sailings ( the measly OBC benefit for my shares) very early as I did not understand you should wait until the 30 day mark but low behold all of my sailings were already credited the OBC, just Wow!

Link to post
Share on other sites

I have been looking at RCL stock too.. but I have a couple of fears..   1) I think recovery is going to be very very long and I question if the cruise industry will ever return to the highs on recent times.. and 2) there is a chance that RCL goes into bankruptcy protection if this goes on for several months and I believe common stock becomes  worthless then..

Thoughts? 

Link to post
Share on other sites
8 hours ago, Scrumps said:

I have been looking at RCL stock too.. but I have a couple of fears..   1) I think recovery is going to be very very long and I question if the cruise industry will ever return to the highs on recent times.. and 2) there is a chance that RCL goes into bankruptcy protection if this goes on for several months and I believe common stock becomes  worthless then..

Thoughts? 

Looking at their earnings report, I'd be amazed if they go into bankruptcy protection with a 30 day shutdown.. Given their liquid assets and cash, and the fact that they'll be saving on food/fuel, I'd see it taking much longer.. They'll scale to fit the demand until it returns, and likely they'll be back to full capacity WELL before the end of the year, if not before the end of the summer.

As for the stock prices.. if someone wanted to ensure they could get the 100 stock at ~30 and are afraid it might jump, you could always buy a single 2-3 month call option and then exercise it if it's suddenly $40 🙂 Though finding a 2-3 month call option that isn't 1k or more is the real challenge currently ($995 for a $35 call expiring June 19th, though that'll probably drop in price monday). I do think the stock will go down further this coming week, though. There's a lot of push to downgrade their rating and although it shot up with the other stocks Friday, it again started dropping in after hours trading.. I could see a bottom-out of $20, but right now some of the swings are so chaotic it could plummet to <10 or shoot up to 50! 😅

Link to post
Share on other sites

With a 30 day shutdown, I agree.. but this thing is only just starting. I'd be shocked if anyone is cruising before June.. and then the question is, how long before they get back up to capacity. I agree that we could see RCL down in the 20's soon.

Link to post
Share on other sites

The other issue I see is that when cruising does resume a lot of people will be booking/paying using FCC which won’t help with cash flow.

just to be on the safe side we took the cash refund instead of 125% fcc. I don’t expect Royal to go bankrupt but I would rather have the money sitting in my bank account rather than an a FCC sitting in theirs which could become worthless in a worst case scenario, especially if it is worth thousands of dollars.

 

Link to post
Share on other sites

Another thought to interject;

Given the people's love for cruising and RCL being best in brand with a strong balance sheet, I believe this virus will be short term as all of the previous virus's. Even if you get the Corona virus your chance of recovery is near 99%. In addition, it was announced Sunday that the US Treasury Secretary and VP Pence would be giving any  financial assistance needed to the airline as well as the cruise line industry. I find it difficult to think RCL would go bankrupt,  many of the cruises this Thanksgiving and Christmas have categories already sold out even with the virus information. Call and put options will probably expire worthless and all the shorts will have to cover when aid is announced. I feel it is best to average down and be a long term investor. Last thing, ask yourself, did people stop traveling after our last disaster? 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...