JimnKathy Posted December 8, 2020 Report Share Posted December 8, 2020 I cut and pasted some RCL stock news posting earlier this morning that anyone who owns shares should be made aware. Like other cruise lines wading through this pandemic year, RCL has been issuing lots of new debt which places a pretty big drag on their balance sheet and income statement. Be careful out there when considering where to allocate your investment dollars. "Royal Caribbean Group's (RCL) credit rating is in danger of being downgraded deeper into junk territory by S&P Global Ratings, which citing expectations that the cruise operator's recovery will take longer than previously projected. The company's issuer credit rating of B+, which is four notches below investment grade territory, was put on CreditWatch with negative implications, as Royal's recently extended suspension of cruises through February is beyond S&P Global's assumptions, which was for operations to resume in a phased manner starting in the fourth quarter. "Accordingly, we expects Royal to burn more cash relative to our previous expectations and for leverage to remain very high in 2021," S&P Global said. The stock, which rose 1.5% in morning trading, has tumbled 37.9% year to date, while the S&P 500 has gained 14.1%." Quote Link to comment Share on other sites More sharing options...
cruisellama Posted December 10, 2020 Report Share Posted December 10, 2020 Been surprised at the rise above 80. Its an artificial bump up (good time to sell some) and wait for the drop and buy it back. I'm guessing we won't see operational upturn feeding revenue until Q4'21. Quote Link to comment Share on other sites More sharing options...
twangster Posted December 10, 2020 Report Share Posted December 10, 2020 When I saw they were doing another $1B stock drop I knew it wasn't good. You can't keep on "printing money" in this fashion and escape unscathed. Sadly they may need may need to do another. For the cruising public it's not so much a concern. For any investor you'll need to be in for the long, long haul. Long. JLMoran and JimnKathy 2 Quote Link to comment Share on other sites More sharing options...
JimnKathy Posted December 10, 2020 Author Report Share Posted December 10, 2020 13 hours ago, twangster said: When I saw they were doing another $1B stock drop I knew it wasn't good. You can't keep on "printing money" in this fashion and escape unscathed. Sadly they may need may need to do another. For the cruising public it's not so much a concern. For any investor you'll need to be in for the long, long haul. Long. While I think RCL will continue to be a great cruising brand for many years to come, future earnings per share will be diluted by new stock issuance and a more than doubling of their overall debt levels (due to COVID). Bottom line is that the company management is in survival mode and is doing everything they can to keep things afloat (pun intended) while the world works on defeating this pandemic. Common shareholders just need to understand that it'll take the company many years to pay down their debt levels to make the stock an attractive investment. twangster, cruisellama and JLMoran 3 Quote Link to comment Share on other sites More sharing options...
Cakemeister Posted December 10, 2020 Report Share Posted December 10, 2020 Frequent cruisers should definitely take the opportunity to buy 100 shares on a significant dip. Normally, I stay out of the stock market but if I had known last year that shareholders get $100 onboard credit per cruise I would have picked up 100 shares back in the spring when shares were in the 30's. KristiZ, emmef and Pattycruise 2 1 Quote Link to comment Share on other sites More sharing options...
twangster Posted December 11, 2020 Report Share Posted December 11, 2020 People should buy into Royal stock if it is consistent with their investment strategy. If you cruise 10 or 20 cruises a year then the $100 OBC can become a bigger factor. Most people don't cruise that much. Do the math, put it into a spreadsheet. How many cruises have you taken over the past several years? What is your cruise per year average? Weigh that against sound investing strategies based on the stock price and what you think might occur with the stock going forward. If it makes sense given the risk and outlook then plan your strategy carefully. Travel stocks are very volatile right now. Be very careful to jump off the ledge to time the wave that is approaching because after a peak is a trough. A trough always follows a peak. The only question is the difference between the two. JLMoran 1 Quote Link to comment Share on other sites More sharing options...
cruisellama Posted December 11, 2020 Report Share Posted December 11, 2020 Pretty clear the cruise lines are marketing near future cruises ('21 - early '22) pretty heavy to keep cash flow coming in. I'm bewildered on how slow RCG continues to roll out late 2022 itineraries. Seems like there would be a greater propensity for people to book later cruises in today's environment, hence could collect more deposits. Is deposit revenue reported for the quarter its received? Or in the quarter the actual cruise would take place? Quote Link to comment Share on other sites More sharing options...
twangster Posted December 11, 2020 Report Share Posted December 11, 2020 8 minutes ago, cruisellama said: I'm bewildered on how slow RCG continues to roll out late 2022 itineraries. Seems like there would be a greater propensity for people to book later cruises in today's environment, hence could collect more deposits. Normally they have a team right sized for planning cruises 2 to 3 years in the future. Now that team is scrambling with reinventing cruises longer than 7 days into 7 days or shorter focusing on 2021. Furthermore they are all in their pajamas trying to help school their children remotely from home. They aren't looking at 2022 into 2023 because they can't. emmef, Mrs. RoyalMoyal, SpeedNoodles and 2 others 4 1 Quote Link to comment Share on other sites More sharing options...
Baked Alaska Posted December 12, 2020 Report Share Posted December 12, 2020 RCG will become a Zombie Company, if not already. I hate to see this, and it is really no surprise as the writing has been on the wall. Hopefully, the vaccine can take a hold and things will be back to NORMAL (not new normal) in 2024. https://www.fool.com/investing/2020/12/03/zombie-companies-have-raised-nearly-1-trillion-dur/ cruisellama 1 Quote Link to comment Share on other sites More sharing options...
princevaliantus Posted December 12, 2020 Report Share Posted December 12, 2020 12 hours ago, Baked Alaska said: RCG will become a Zombie Company, if not already. I hate to see this, and it is really no surprise as the writing has been on the wall. Hopefully, the vaccine can take a hold and things will be back to NORMAL (not new normal) in 2024. https://www.fool.com/investing/2020/12/03/zombie-companies-have-raised-nearly-1-trillion-dur/ Question: What indicators give thought to RCG being a Zombie? Quote Link to comment Share on other sites More sharing options...
KWong Posted December 13, 2020 Report Share Posted December 13, 2020 14 hours ago, princevaliantus said: Question: What indicators give thought to RCG being a Zombie? It's in your head. In your head... Baked Alaska, AshleyDillo, SpeedNoodles and 4 others 1 6 Quote Link to comment Share on other sites More sharing options...
PaulRC Posted December 13, 2020 Report Share Posted December 13, 2020 8 hours ago, KWong said: It's in your head. In your head... Love them! KWong 1 Quote Link to comment Share on other sites More sharing options...
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