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As of this post, cruiseline stocks are getting hammered (among other equities)!

Royal Caribbean (RCL) is at ~US$49.50/share which is close to where it was at back in April 2020 post the initial COVID crash.

Seems like a tempting time to BUY given that the while entire fleet is now back in service, and from what I understand near full capacity in many sailings, cruising being made less restrictive than it was in the past, etc.... But of course, there is increasing gas prices - and these ships are thirsty(!), inflation (which includes food cost), staffing shortages, etc.

Curious to know your thoughts on this being a great opportunity to get in on a bargain price OR another risky gamble of RCL tanking even further given they're still bleeding and haven't yet turned a profit since pre-COVID.

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the markets in general are very volatile so all plays are risky plays atm, even strong companies like RCL. when you decide to buy should also depend on whether you're in it short term or long term

i'm also closely monitoring it. i think it will drop some more but i intend to buy sooner rather than later. i expect them to be profitable in this quarter n when those numbers come out, the stock should pick up quite nicely imo.

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IANAL.  Personally I've been scooping up a little more the past few days as I think around $50 is a solid long term investment.  The more it drops from here, the more I'll be buying.

I've already owned enough for the shareholder benefit before, but you should factor that into the equation if you are planning on getting at least 100 shares.  It's basically like getting a 2% dividend every time you take a week long cruise at this level.

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I am curious to what others have to say. Personally, I think they are going to have to lower their ticket prices if they want to keep the ship full. I just came off a cruise, but if I would have had to pay today's price, I would not have been able to afford it. I have been watching this stock for some time. Just about a month ago, it was at about $84. Today it is at $49.73, But one has to remember that Carnival is only at $11.76 today.

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19 minutes ago, Safemike1 said:

But one has to remember that Carnival is only at $11.76 today

but the 52 week high of Carnival ($31.52) is $18 lower than what Royal is currently trading at..

both companies are not in the same sphere at the moment from a business point of view. It's why Royal has always been the strongest performing stock of the 3 major companies (Norwegian being the other).

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45 minutes ago, Safemike1 said:

Today it is at $49.73, But one has to remember that Carnival is only at $11.76 today.

Stock price is different than market capitalization.

A lower stock price does not necessitate a lower value company. 
 

At today’s close Royals market cap is $12.68B and Carnival $13.82B

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The price is attractive.  I actually bought 100 shares back during Covid when it was trading at $36.  It was over $100 pre Covid but has taken on a lot of debt to keep things running.  RCI has good cash flow but still is not reporting a profit post covid. - The entire market is down, and a recession seems to be on the horizon - none of these things are good from an investment perspective.  The good news is that capacity is up and Covid is entering the rear-view mirror in terms of its effect on the industry.

The biggest concern in investing is bankruptcy.  If a company you own stock in ends up in bankruptcy, you will end up with pretty much nothing on your investment.  The company may reorganize, but there will be new owners - not you.  If you buy RCI today, you are betting that this will not happen.  If it doesn't, you will almost certainly make money in the long term.

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3 hours ago, SaveTheSharks said:

As of this post, cruiseline stocks are getting hammered (among other equities)!

Royal Caribbean (RCL) is at ~US$49.50/share which is close to where it was at back in April 2020 post the initial COVID crash.

Seems like a tempting time to BUY given that the while entire fleet is now back in service, and from what I understand near full capacity in many sailings, cruising being made less restrictive than it was in the past, etc.... But of course, there is increasing gas prices - and these ships are thirsty(!), inflation (which includes food cost), staffing shortages, etc.

Curious to know your thoughts on this being a great opportunity to get in on a bargain price OR another risky gamble of RCL tanking even further given they're still bleeding and haven't yet turned a profit since pre-COVID.

Bought some.  Thinking long term.  It's only my son's inheritance I am spending at this point.....

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Ended up rolling the dice and adding a few shares to my existing RCL holdings yesterday!

Let's see where this goes!! Travel industry equities are so volatile, but I'm being optimistic that cruising will bounce back better than others.. Intending to hold for Mid-Long term.. And yea, while not being the main incentive, having the OBC bonus is nice ha!

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I bought RCL back in April 2020  during the covid because I did not think RCL would go bankrup and I did not think that the cruise industry would implode. I was able to sell the stocks that I did have once it rose into 60s during the cruise restart. I currently have a limit buy order if share hit 45/share. I do think that the stock will bounce back. 

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  • 3 weeks later...

I bought for the shareholder benefit - we cruise often enough it's the equivalent of about a 4% dividend. In 2023 the company will reach the point in its COVID relief agreement it can begin paying a dividend again if it chooses, and RCL was a solid dividend payer prior to COVID. 

Right this minute its balance sheet is a mess but this was a profitable company and I expect it to return to such... eventually. I don't intend to pick up any more (though man, it's tempting right now) until the balance sheet settles down. In the meantime I will enjoy my shareholder perk.

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12 minutes ago, Riley said:

I bought for the shareholder benefit - we cruise often enough it's the equivalent of about a 4% dividend. In 2023 the company will reach the point in its COVID relief agreement it can begin paying a dividend again if it chooses, and RCL was a solid dividend payer prior to COVID. 

Right this minute its balance sheet is a mess but this was a profitable company and I expect it to return to such... eventually. I don't intend to pick up any more (though man, it's tempting right now) until the balance sheet settles down. In the meantime I will enjoy my shareholder perk.

Feel the same way... bought in at $22 a share. I enjoy the shareholder perk (when they respond to email...lol)

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1 hour ago, SaveTheSharks said:

Holy... As of writing this post, it's at ~US$46... Dropped about -16% in 3 days... But still staying optimistic that cruising will bounce back!! Just going to have to cover my eyes for now lol 🙈

I just bought in again. I think there are some macro and world wide economics going on driving down the stock prices. 1) Obviously still having covid around 2) Price of gas 3) Price of employees / short staffing 4) Inflation of goods in general. 5) Not having a cruise restart in Asia market 6) Overall world wide unrest. 

Although with all these factors considered, I still think RCCL is a good buy because inflation will not last forever and there is still high demand for cruises. Again I am not professional stock advisor, but I bought in again.  Just try to look at it from the long term. 

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I too am a shareholder.  It is difficult to know what to do. I don't expect all the cruise lines to survive.  I think some mergers may happen. I don't want to sound like a Royal snob but I personally don't know of any other cruise lines that I would prefer over Royal or Celebrity so if they do merge with another line, I don't know if it would be of much benefit, but who knows?

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12 minutes ago, BB1 said:

I too am a shareholder.  It is difficult to know what to do. I don't expect all the cruise lines to survive.  I think some mergers may happen. I don't want to sound like a Royal snob but I personally don't know of any other cruise lines that I would prefer over Royal or Celebrity so if they do merge with another line, I don't know if it would be of much benefit, but who knows?

Mergers are really hard because the cruise lines are so large as it is. RCCL owns Both Royal/Celebrity/and Silverseas. They also have significant investments in other cruise lines. I can't really see any of the major cruise lines coming together under one group (eg RCCL and Carnival or RCCL & NCL etc). This is because each cruise group is going to be highly strained. However what I can see happen is RCCL or other cruise groups divesting some or selling off some of their smaller cruise lines or cruise investments. We have already had many cruise lines selling off their older ships. I actually found the Dream Cruises bankruptcy a real interesting case study as the cruise line tried to do too much too fast without being a good steward of their finiacial resources. Overall I would say that RCCL has struck a good balance of conserving the resources and expanding/ updating their fleet.

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Not to be a Debbie-downer but the balance sheets for all the cruise lines are in the pooper 💩...it may be a long time hold but buying a commodity on the way down is like catching a falling knife. You can catch it but sometimes it's going to hurt. RCL has a lot of money to pay back to investors to get their financials back under control and that is why they don't have a positive Price to Earnings (P/E) ratio and their earnings per share is a -20.79. That's not a healthy company.

If you are dollar cost averaging for the long haul you may be rewarded in the end but not anytime soon.

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9 minutes ago, VACruiser said:

Not to be a Debbie-downer but the balance sheets for all the cruise lines are in the pooper 💩...it may be a long time hold but buying a commodity on the way down is like catching a falling knife. You can catch it but sometimes it's going to hurt. RCL has a lot of money to pay back to investors to get their financials back under control and that is why they don't have a positive Price to Earnings (P/E) ratio and their earnings per share is a -20.79. That's not a healthy company.

If you are dollar cost averaging for the long haul you may be rewarded in the end but not anytime soon.

Not a Debbie downer, just reality. I don't think all the cruise lines will make it. I think RC will survive but I'm hoping to avoid bankruptcy. 

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1 hour ago, FireFishII said:

Just bought 100 shares at $40.91/share.  Now I need to scramble to see if I can get OBC applied for Sunday's cruise. 

Real reason why I purchased 100 shares: Because I think it is a fine deal.  I plan on holding on to it for several years.   

I think the verbiage states two weeks lead time to get OBC.  If it doesn't happen for Sunday that may be too close.  

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

3. How do I redeem this benefit?

To complete your Shareholder Onboard Credit Offer Request electronically click here.

Requests should be received in our office approximately 2-3 weeks prior to your sail date.

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14 hours ago, twangster said:

I think the verbiage states two weeks lead time to get OBC.  If it doesn't happen for Sunday that may be too close.  

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

3. How do I redeem this benefit?

To complete your Shareholder Onboard Credit Offer Request electronically click here.

Requests should be received in our office approximately 2-3 weeks prior to your sail date.

Thanks for the link. I had found it last night on another thread.  We filled out the PDF and emailed form in.  I have heard that some people have received their OBC within 2-3 days.  That is what I am hoping for but not expecting.  

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My OBC took less than week.  I did not get an e-mail confirmation that they said they would send.  Just looked at my Planner and the OBC was there one day.  I was surprised to even see it, because I redacted so much of the Brokerage statement that it looked illegible to me.  But alas, the OBC was issued.

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On 6/14/2022 at 11:09 AM, FireFishII said:

Thanks for the link. I had found it last night on another thread.  We filled out the PDF and emailed form in.  I have heard that some people have received their OBC within 2-3 days.  That is what I am hoping for but not expecting.  

First time trying for the OBC, how does one 'email' the form in please?  I only see the option to enter the reservation data then press "Done". Or do you take a snip of it and attach with your brokerage statement.  TIA

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Anyone know how it works if minors own the shares?  Two of my kids are under my name for their e-trade accounts, and 2 are under my husband's.  I'm wondering if I screwed up back in 2020 when I made accounts and should have put all 4 kids under one of us so their shares would equal enough for OBC.  Or does it not even matter because the child is considered the owner, so each of them would need 100?  I'll admit I don't know much about who is considered to be the owner (me or the child?) when it comes to these accounts, we haven't sold anything so I haven't had to deal with taxes and such.

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19 minutes ago, sleepy425 said:

Anyone know how it works if minors own the shares?  Two of my kids are under my name for their e-trade accounts, and 2 are under my husband's.  I'm wondering if I screwed up back in 2020 when I made accounts and should have put all 4 kids under one of us so their shares would equal enough for OBC.  Or does it not even matter because the child is considered the owner, so each of them would need 100?  I'll admit I don't know much about who is considered to be the owner (me or the child?) when it comes to these accounts, we haven't sold anything so I haven't had to deal with taxes and such.

So long as the owner(s) of record is staying in the cabin and total 100 shares you should get the OBC. 

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4 hours ago, Riley said:

So long as the owner(s) of record is staying in the cabin and total 100 shares you should get the OBC. 

That's what I'm confused about.  Since they are UTMA accounts and I'm the custodian, do I count as the owner? If so then the combined total of two of my kids would be what I own.  But if the kids are each the owners, then they have quite a ways to go to get to their 100 each.

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17 minutes ago, sleepy425 said:

That's what I'm confused about.  Since they are UTMA accounts and I'm the custodian, do I count as the owner? If so they the combined total of two of my kids would be what I own.  But if the kids are each the owners, then they have quite a ways to go to get to their 100 each.

You have to show a statement that has your name and 100 shares.  I’d imagine if your name shows 100 shares it’s fine…can’t hurt to try

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14 hours ago, Pattycruise said:

You have to show a statement that has your name and 100 shares.  I’d imagine if your name shows 100 shares it’s fine…can’t hurt to try

and be in separate cabins according to the documentation on RCCL stock benefit page.

2. What is the benefit?
  • $250 Onboard Credit per Stateroom on Sailings of 14 or more nights
  • $100 Onboard Credit per Stateroom on Sailings of 6 to 13 nights
  • $50 Onboard Credit per Stateroom on Sailings of 5 nights or less
  • Applicable on any eligible Royal Caribbean International or Celebrity Cruises voyage.
  • Excludes any charter or Galapagos sailings
  • Royal Caribbean Group will no longer honor Shareholder Onboard Credit requests for Azamara received on or after March 19, 2021 as this brand is no longer part of the group.
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You never know...I purchased stock on Tuesday and sent the request using the email another poster suggested and I just received an email from Royal with the Stockholder OBC posted and a copy of my new invoice confirming.  It's now appearing on the top of my cruise planner.  Literally, it's been about 23 1/2 hours. 😀1201180208_50.Screenshot2022-06-22163929.jpg.a360c223952e56455e1be94d78c8df90.jpg

PS - I depart this Friday, so never, ever hurts to try even if it is less than the 2-3 week guideline.

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On 6/21/2022 at 3:39 PM, Keiffer-b said:

First time trying for the OBC, how does one 'email' the form in please?  I only see the option to enter the reservation data then press "Done". Or do you take a snip of it and attach with your brokerage statement.  TIA

There is a separate PDF form that you would need to fill out.  The PDF and your brokerage account should be emailed to [email protected]rccl.com.

The body of the email should contain the following information: 

Please process the shareholder benefit for my upcoming cruise as follows:

Guest Name: XXXXXXXX

Ship: NNNNNN of the Seas

Sail Date: MONTH DD, YYY

Booking Number: ######

 My brokerage statement is attached.

 Please let me know if there are any issues.

NOTE: The brokerage account statement needs to be relatively recent.  You should also redact all info on the brokerage account except your name, the date, and number of RCL shares.

https://www.rclinvestor.com/content/uploads/2019/07/RCL-Shareholder-Onboard-Credit-Offer-Request-Form.pdf

More information can be found on this thread: Royal Shareholder OBC

Good luck!

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If you cruise at all, you should pick up 100 shares at this price, $33.50 as I write this.

For a 7-day cruise, that is a 3% dividend every time you sail. If you sail three times a year, that's 9%, better than what you'll get on your typical dividend-paying stock.

I should probably DCA but since I am never going to sell there's really no need.

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10 minutes ago, Cakemeister said:

If you cruise at all, you should pick up 100 shares at this price, $33.50 as I write this.

For a 7-day cruise, that is a 3% dividend every time you sail. If you sail three times a year, that's 9%, better than what you'll get on your typical dividend-paying stock.

I should probably DCA but since I am never going to sell there's really no need.

Great advice.

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18 minutes ago, Cakemeister said:

If you cruise at all, you should pick up 100 shares at this price, $33.50 as I write this.

For a 7-day cruise, that is a 3% dividend every time you sail. If you sail three times a year, that's 9%, better than what you'll get on your typical dividend-paying stock.

I should probably DCA but since I am never going to sell there's really no need.

That is true provided they don't go bankrupt.  I have stock and many cruises coming up, so I have a lot of money on the line and I am definitely pulling for them. Unfortunately,  the economy could get much much worse and they may need to reorganize. Anyone can guess but only time will tell.

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1 hour ago, Cakemeister said:

If you cruise at all, you should pick up 100 shares at this price, $33.50 as I write this.

For a 7-day cruise, that is a 3% dividend every time you sail. If you sail three times a year, that's 9%, better than what you'll get on your typical dividend-paying stock.

I should probably DCA but since I am never going to sell there's really no need.

DCA?

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