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I have found over the years that buying property is the way to go. I purchase as much as I can, even the less expensive ones. But I don't really care for Boardwalk or Park Place. There is a big pay off once in awhile, but the chances that people actually land on them is not worth the expensive. I also like the railroads and utilities!

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FWIW, I don't own any RC stock (unless my IRA has some, but that's not intentional). I believe you should buy stock because you think it's a sound investment, not because you necessarily like/lov

OK, first off, while I work in the financial industry I am not a licensed broker or financial advisor! I'm just an IT guy who happens to have learned a decent amount about investing from my dad and my

I have found over the years that buying property is the way to go. I purchase as much as I can, even the less expensive ones. But I don't really care for Boardwalk or Park Place. There is a big pay of

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14 hours ago, JLMoran said:

Forgot to say this earlier. Don't try to time the bottom. You really can't, and as @loki007 said, it's going to take time to go back up anyway. IF you truly believe the price is going to keep going down for a bit, and you definitely want to buy the stock, then after setting up your brokerage account you can enter what's called a Limit Order, which is a standard type of stock order that every brokerage site offers.

Normally when you buy a stock, you're doing what's called a Market order -- buying it immediately at whatever the current price is. When you do a Limit order, you're changing it to say, "Don't actually buy this until the price is at or below the price I've specified." Normally, that just lasts for the day; if the price doesn't hit your mark then the order is canceled.

But you can also specify to keep the order in place until you cancel it (that is, mark it as "Good until Canceled"). That adds the rule, "If the price doesn't hit my mark today, keep this order open until it does hit my price, or I tell you to give up".

This combo is commonly used when the price is going down steadily; just pick a price (X) that you're comfortable buying it at, and don't worry about if it's going to be the bottom or not. If you think $15 is a good price to buy, make that your Limit Price and be ready for it never to reach that. If you won't buy for a penny over $10, set that to the price and take your chances on that level. As soon as the price reaches or goes below that level, the buy takes place.

Keep in mind that the price never changes by just a penny at a time, although most days the price doesn't change by more than a few cents at once. It could be $15.07 and then in the next second drop to $15.03, then back up $15.05, then down to $14.99. So if you set $15 as your threshold you might get it for exactly $15, but more likely it'll be for something like $14.97.

 

Market fun fact side note: There's another order type called a Stop order that's often used to make sure your investment doesn't go through a particular floor without automatically selling. It's like the opposite of a Limit order, in that you say "I want to sell X number of shares when the price is at or below $Y". Those can also be kept active until canceled, and a lot of investors use those to protect themselves from a sudden drop in the market.

I'm guessing that there's some portion of RCL investors that read the tea leaves about this pandemic and put in a lot of Stop orders to auto-sell their RCL when it dropped below marker values like $100, $80, $60, etc. In a free-falling market like this one, those Stop orders trigger so fast and sell off so much at once that they actually can make the situation worse for a time, artificially dropping the price like a rock depending on how many of those orders got triggered all at once.

Again, very good information.  Much appreciated 

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13 hours ago, twangster said:

You have to send proof of ownership.

If you book a cruise and get OBC as part of your booking, do you get shareholder OBC on top of it?  I've never booked a RC cruise where I haven't gotten OBC of some amount as part of the booking.  

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21 minutes ago, JBC said:

If you book a cruise and get OBC as part of your booking, do you get shareholder OBC on top of it?  I've never booked a RC cruise where I haven't gotten OBC of some amount as part of the booking.  

Yes, for cruises booked on or after June 1, 2019.  There may be some promos that are not combinable but of the 14 I submitted they all were approved.  Some had various forms of OBC, some didn't.

FAQ here:

https://www.rclinvestor.com/faqs/shareholder-benefit/ 

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20 hours ago, JLMoran said:

So I was really surprised to see that cruise fares are 75% of their income, while on-board spend is 25%.

It's been the trend for the last few years, and onboard spend (anything purchased in Cruise Planner or on the ship) has been their gold mine that generated record profits quarter after quarter.

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FWIW, I don't own any RC stock (unless my IRA has some, but that's not intentional).

I believe you should buy stock because you think it's a sound investment, not because you necessarily like/love the company. I also believe I know nothing about stocks, so I'm better sticking my money in investments that will deliver far more return...like drink packages!

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3 hours ago, Hutcherl said:

Again, very good information.  Much appreciated 

Glad you find it helpful. Even though I started investing back in 2000, it wasn't until I was working in the financial industry for maybe 12 years before I finally learned and understood the point of limit and stop orders, and how those are supposed to be used in different markets and with different trading strategies. And to be clear, I'm no investing guru. My track record with buying stocks is 1 out of 11, because most of the ones I've bought over the years I either didn't truly understand or just had lousy luck with timing. This is why the majority of my retirement savings is still invested in... wait for it... mutual funds!

If you want to see my trading history, read on. It's not pretty.

 

 

1999 -- 3M, Caterpillar, and two others I can't remember. All of them tanked shortly after I bought them and never recovered, even after waiting over year; that lost me half of the money I'd invested, and that had taken me a long time to save up.

2000 -- Sold those and put what I had left into Kohls, Bed Bath and Beyond, BEA Systems, and Cisco. Did a bit more research on those and thought I had chosen more wisely. BEA went out of business not two years later. Cisco got hammered by the internet bubble bursting, even though they were still a solid company. Bed Bath and Beyond and Kohls didn't do horribly, but they also were not nearly as good as I was expecting given their place in the retail segment, their strong history, and their balance sheet.

2002 -- Sold all of those and put what I had left (not much) into Apple and Pixar. Apple I knew very well, after years of following the company. Pixar was a bit of an impulse buy, but after putting out hit after hit after hit, it was clear they not only had the technical chops but the creative ones as well. But while Pixar did well, they got bought by Disney just a year later. And I did not like Disney the company / stock, so I got out as soon as I could.

2018 -- Used some dividend payouts from Apple to buy 10 shares of Tesla. This was more of an "I want to support this company because I believe in their mission" buy. They made me some money, but I couldn't stay with them after Elon Musk made the unbelievably stupid decision to tweet that they were going private and had funding secured, which was an absolute lie (which got him fined by the SEC). I couldn't stay invested in a company with a guy like that at the helm, so I sold it off shortly after that happened; and have since lost out on another doubling in stock price in just the last year to 18 months. Apparently the market is fine with him at the helm and the ongoing troubles they're having with meeting production goals and sales targets.

So after 20 years in the market and 11 stocks, my only real winner has been Apple, which as everyone knows has done phenomenally. I actually sold half of it way back in 2003, when the price had more than doubled in just over a year and I wanted to lock in some profits. I put all of that into a Vanguard mutual fund IRA while I let the rest of my Apple stock ride. I still follow it religiously, checking all the news articles in my feed and reading up on all the quarterly reports to make sure nothing is starting to look off. With luck, that will continue to grow all the way until I retire, at which point I'll sell it off and move the money into a good utility fund or something else that pays good income each quarter.

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9 minutes ago, Matt said:

It's been the trend for the last few years, and onboard spend (anything purchased in Cruise Planner or on the ship) has been their gold mine that generated record profits quarter after quarter.

That makes the regular mistakes with the "intern goof" and other things on their web site even more concerning, given how frequently they seem to happen lately. If that's truly their gold mine, they should be doing everything in their power to make sure mistakes like that are beyond rare since they will have an outsized impact on their bottom line.

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1 minute ago, JLMoran said:

That makes the regular mistakes with the "intern goof" and other things on their web site even more concerning, given how frequently they seem to happen lately. If that's truly their gold mine, they should be doing everything in their power to make sure mistakes like that are beyond rare since they will have an outsized impact on their bottom line.

Agreed, and one drink package mistake is certainly an outlier, and not any kind of problem. Pricing mistakes in the Cruise Planner are incredibly rare. I don't consider the website acting goofy as being in the same category of financial impact.

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Just now, Matt said:

Agreed, and one drink package mistake is certainly an outlier, and not any kind of problem. Pricing mistakes in the Cruise Planner are incredibly rare. I don't consider the website acting goofy as being in the same category of financial impact.

Hm, I thought there were some similar issues last year around either Cruise Planner item pricing (not necessarily DBP, but maybe another package) or else the cruise fares that people found and snapped up, which Royal then had to honor. I agree that general glitchiness in the web site isn't a financial concern; although as a web app developer, it smacks of an operational concern.

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A couple personal thoughts:

RCL is in a tough spot. Share price is free falling and they have huge overhead costs with little income. I can not imagine a current  shareholder that would not call it a distressed asset. 

If you want to pick up 100 shares in expectation to receive future OBC for "cruises I'd be do'in anyway"  Ummmm..... distressed assets don't give away free things to customers. I would NOT buy RCL expecting that free $50/$100/$250 on my sea pass. Wrong answer.

Dividends? Not anytime soon.

Near term increase in stock price? I think the share price will go down further the next time they announce earnings. Like, Staples doesn't have enough red ink toner cartridges for me to print out the report. 

 

But.......

 

If you are a Royal fan and have never opened a brokerage account and bought some stock. I think this is a great opportunity to do so. Look at it this way: If you feel "Yeah, the financial world is very confusing. So confusing, I want to avoid the whole thing. I have no idea what the mumbo jumbo means." But.... you do have a relationship with Royal. An intimate knowledge of their day to day. Whether it's reading this blog or being onboard and seeing with your own eyes how well their brand is doing. 

I would endorse someone in the above circumstance going to a Fidelity, Charles Schwab, TD Ameritrade, Chase Bank....whatever, there are a ton of brokerage outfits. Open and fund your account ( this takes a few days for your funds to become available for trading BTW) and buying some RLC. And then watch it. Learn from it. And perhaps most of all, become a better cruiser in the future because you have some skin in the game. You'll be prouder of whatever ship you are on. It won't be imposing to say "Hey kiddo, get off the railing!" 

RCL needs your support. 

You don't have to spend thousands of dollars. You can spend $100. Just know you are buying a very volatile asset and don't have expectations that this is going to pay off anytime soon.

I think in years down the road, Royal will be back as strong as it was.

 

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I am following the market all the way down. I saw the prices in 2009 but had no money available to buy anything and I hate that I lost out on such opportunity. This time I have cash on hand to buy.  My concern with RCL is what I asked in another post, that is, the possibility of bankruptcy.  That does not mean they 'go' bankrupt, but that they file chapter xx and ask courts to reorganize and protect from creditors. This is the important part.. most, if not all, common stock becomes worthless at that point.

RCL could come out the other side and become profitable, but your stock is gone.  I suspect several hard hit companies could go this route.  I know RCL just pulled 500 million in cash, but I find it hard to believe that anyone is cruising in April. Most ports are closed and this virus has not even really got started yet in the US. We are pretty much where Italy was 3 weeks ago.

I believe we will be lucky to see cruising restarted until at least May, and I would not be surprised if it's June. What would that do to RCL stock or the company?

My point is that although RCL stock looks attractive, there are many other companies out there at the moment with great low stock prices that are not in danger of the stock becoming worthless. This is just my thought process and wanted to ensure those who have not purchased stock before understand you might lose it all..  However, once it gets down to single digits, you are not losing much..

I think the best advise someone gave was do not buy stock until cruising restarts.

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4 hours ago, bobroo said:

A couple personal thoughts:

RCL is in a tough spot. Share price is free falling and they have huge overhead costs with little income. I can not imagine a current  shareholder that would not call it a distressed asset. 

If you want to pick up 100 shares in expectation to receive future OBC for "cruises I'd be do'in anyway"  Ummmm..... distressed assets don't give away free things to customers. I would NOT buy RCL expecting that free $50/$100/$250 on my sea pass. Wrong answer.

Dividends? Not anytime soon.

Near term increase in stock price? I think the share price will go down further the next time they announce earnings. Like, Staples doesn't have enough red ink toner cartridges for me to print out the report. 

 

But.......

 

If you are a Royal fan and have never opened a brokerage account and bought some stock. I think this is a great opportunity to do so. Look at it this way: If you feel "Yeah, the financial world is very confusing. So confusing, I want to avoid the whole thing. I have no idea what the mumbo jumbo means." But.... you do have a relationship with Royal. An intimate knowledge of their day to day. Whether it's reading this blog or being onboard and seeing with your own eyes how well their brand is doing. 

I would endorse someone in the above circumstance going to a Fidelity, Charles Schwab, TD Ameritrade, Chase Bank....whatever, there are a ton of brokerage outfits. Open and fund your account ( this takes a few days for your funds to become available for trading BTW) and buying some RLC. And then watch it. Learn from it. And perhaps most of all, become a better cruiser in the future because you have some skin in the game. You'll be prouder of whatever ship you are on. It won't be imposing to say "Hey kiddo, get off the railing!" 

RCL needs your support. 

You don't have to spend thousands of dollars. You can spend $100. Just know you are buying a very volatile asset and don't have expectations that this is going to pay off anytime soon.

I think in years down the road, Royal will be back as strong as it was.

 

How did you do that?? You nailed my situation and thought process exactly.  

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1 hour ago, Hutcherl said:

How did you do that?? You nailed my situation and thought process exactly.  

I'm glad that makes some sense, I've used that approach many times myself. I was really reacting to the common threads of many other posters here.

Online trading today is super cheap if not free. There are a lot of similarities between a brokerage account and an account on Amazon or e-Bay. Many big banks offer trading and it's quite convenient to go online to see how much is left in your checking account and alongside that is the status of your brokerage account. Maybe that's the first place you look?

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On 3/18/2020 at 9:06 AM, berkeleykel said:

Buying stock of a company particularly affected by a crisis while that crisis is still on-going and even in an upswing...does not seem like a wise decision to me unless you have the money to blow and feel like gambling.  Buying stock in a company because you like it much more than the average person is also not wise in my view (insert diversified portfolio lecture here).  

Just don’t want financial novices to see this thread and think this is normal investing behaviour or want to jump on the bandwagon to feel like part of the crowd. 

I'd like to echo this, PLEASE don't jump into the stock market willy nilly! Timing the stock market is impossible and if you aren't invested wisely and with a lot of diversity it is extremely risky.  Don't do options. If you want to buy some stocks right now please be doing a lot of research over the next couple weeks before making any decisions. Talk with a professional financial planner and stay away from day trading. Look for solid companies with a history of beating the S&P for the bulk of your investing. You can put a Little into higher risk, higher reward companies but that should also be diversified with many others and should be a small part of your portfolio. If you don't plan on keeping these stocks for the next 10 years then just DONT DO IT. If you just go with your gut you are going to lose, do your homework. 

Also please do not invest or stop investing in a company because of how you feel about them. Money doesn't care. Read their balance sheets. How much debt do they have compared to savings? What are their profit margins? ect....

God bless! Cruise and be Merry!

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45 minutes ago, danv3 said:

Up > 17% today.  Investors must be hopeful about the potential of a bailout.

It shot up after the announcement of securing $2.2 billion in credit, meaning their liquid assets are in the billions and they will be able to keep operating for quite a while even with low income.

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