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El Cheapo Cruises Thread

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4 hours ago, MicCanberra said:

But only a loss if you sold again today, as I said, only do it if it is to be a long term investment.

 

Thanks to your help, MicCanberra and RosieCanberra, with setting up the ANZ platform and advice on all the stuff, I bought mine a few days ago. Thanks for that - I don't care what the fluctuations are - the underlying value is there as well as the benefits.

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3 hours ago, The_Big_M said:

 

Could be a bigger loss if you sell tomorrow.

 

Essentially, people have differing reasons for wanting to buy it, and may not want to hold it forever. But it may not recover back to profitable levels - I think it took 8 years to recover its peak the last time it went down a lot.

 

If you're just buying for OBC, but the actual value has fallen more than the OBC you get, what is the point? It's actually adding hassle to your life/financial management, and the tax complications are significant.

If people are spending $6000 AUD on a short term investment, so they can get $250 OBC then something isn't right.

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3 hours ago, The_Big_M said:

 

Actually, it's still a loss whether you sold or not - just not realised.

True, but then same applies to any gains.

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2 hours ago, LittleFish1976 said:

 

Thanks to your help, MicCanberra and RosieCanberra, with setting up the ANZ platform and advice on all the stuff, I bought mine a few days ago. Thanks for that - I don't care what the fluctuations are - the underlying value is there as well as the benefits.

I am sure the price will be back up past $45 before the year is out, even if it does drop further first, not that it matters, as we do not plan to sell for at least another ten years. 

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32 minutes ago, MicCanberra said:

I am sure the price will be back up past $45 before the year is out, even if it does drop further first, not that it matters, as we do not plan to sell for at least another ten years. 

 

Ok based on 10 years share ownership Back Of envelope calculation.

 

Outlay Buy 100 Carnival stock $4000 US $6000 Aus

 

Assume 10 Year Ownership

 

Typical Carnival share price appreciation over 10 years isnt much so lets say. $0 capital appreciation and gain. After 10 years you get just $4000 back

 

Shareholder On Board Credit benefit over 10 years

Assume three to four  14 day cruises over 10 years

=3.5 X $250 OBC =$875 x 10= $8750

 

Carnival Shareholder annual Dividend

 

10 years at $2 per share = $200 US x 10 years = $2000 US

 

Carnival Share Outlay $4000

 

Dividend Return $2000

OBC Benefit 10 years $8750

 

Assuming shares stay at same price you are $10,750 better off.

 

 

 

 

Edited by amatuercruiser

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3 hours ago, LittleFish1976 said:

 

But the shareholder benefits actually support the price of the stock. If they did away with the OBC shareholder benefit it would be a less attractive proposition and so less people would buy it and the price would drop.

 

Not really. The number of personal shareholders holding minimal amounts compared to institutional and large cap holders is miniscule.

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1 hour ago, MicCanberra said:

If people are spending $6000 AUD on a short term investment, so they can get $250 OBC then something isn't right.

 

Even long term, any investment should be weighed up for its purpose, and value, not just bought because of a side benefit when there is a much larger amount at stake.

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1 hour ago, MicCanberra said:

True, but then same applies to any gains.

 

Indeed - though the discussion was around losses, and being aware of the risk. 

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1 minute ago, Hazydavo said:

Ummm is this the elcheapo thread or the keen investor advice column 🙄

El cheapo and keen investor is same thing in my book!!

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1 minute ago, amatuercruiser said:

El cheapo and keen investor is same thing in my book!!

Haha good point 😁

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But just think we may be straying a little from the original purpose of the thread??

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2 minutes ago, Hazydavo said:

But just think we may be straying a little from the original purpose of the thread??

I think possibly the reason the forum  strayed was the question..

 

Would I get the cheap Cruise fair AND get the shareholder on board credit?

 

 

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16 minutes ago, amatuercruiser said:

I think possibly the reason the forum  strayed was the question..

 

Would I get the cheap Cruise fair AND get the shareholder on board credit?

 

 

Yep, and do we reckon that’s been answered now?

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7 hours ago, The_Big_M said:

 

Even long term, any investment should be weighed up for its purpose, and value, not just bought because of a side benefit when there is a much larger amount at stake.

I agree, that is why I have always said, do it for the investment yield not for the OBC.

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9 hours ago, amatuercruiser said:

 

Ok based on 10 years share ownership Back Of envelope calculation.

 

Outlay Buy 100 Carnival stock $4000 US $6000 Aus

 

Assume 10 Year Ownership

 

Typical Carnival share price appreciation over 10 years isnt much so lets say. $0 capital appreciation and gain. After 10 years you get just $4000 back

 

Shareholder On Board Credit benefit over 10 years

Assume three to four  14 day cruises over 10 years

=3.5 X $250 OBC =$875 x 10= $8750

 

Carnival Shareholder annual Dividend

 

10 years at $2 per share = $200 US x 10 years = $2000 US

 

Carnival Share Outlay $4000

 

Dividend Return $2000

OBC Benefit 10 years $8750

 

Assuming shares stay at same price you are $10,750 better off.

 

 

 

 

Dividends are paid at $0.30 USD per quarter so $1.20 per year. We tend to cruise a little less than that with Carnival corp lines but I can tell you the math isn't too far wrong after having the shares for around 7 years of ownership so far.

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BTW, there are some nice specials on Cunard and it is only another day until Sapphire Princess prices are released.

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28 minutes ago, MicCanberra said:

 It is only another day until Sapphire Princess prices are released.

All ready to go tomorrow morning from 11am.

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3 hours ago, MicCanberra said:

BTW, there are some nice specials on Cunard and it is only another day until Sapphire Princess prices are released.

As a Australian lookiing to cruise in or around Australia Carnival Co Cruise ships are plentiful so I intend to make my first stock purchase in Carnival and try there ships first IE Cunard HAL, P&O Princess Costa etc.

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18 minutes ago, amatuercruiser said:

As a Australian lookiing to cruise in or around Australia Carnival Co Cruise ships are plentiful so I intend to make my first stock purchase in Carnival and try there ships first IE Cunard HAL, P&O Princess Costa etc.

I bought mine about a year ago. Since then used it on 4 cruises (Carnival, P&O and Costa) and have 3 more booked for this year. It covers 90% of the cruise lines we use.

 

Thinking of buying some for my 22 year old who loves cruising. Can only be used once per cabin but as a long term investment for him I think he will get good value.

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34 minutes ago, Phill.Hurst said:

I bought mine about a year ago. Since then used it on 4 cruises (Carnival, P&O and Costa) and have 3 more booked for this year. It covers 90% of the cruise lines we use.

 

Thinking of buying some for my 22 year old who loves cruising. Can only be used once per cabin but as a long term investment for him I think he will get good value.

That is the best part of these, the dividends and the addition of OBC when cruising on certain lines.

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26 minutes ago, MicCanberra said:

That is the best part of these, the dividends and the addition of OBC when cruising on certain lines.

He is 22. I think he will get value over the next 60+ years LOL

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15 minutes ago, phoenixx said:

I'm in NZ, can anyone help with how to buy the shares from here please?

I used an App called Stake to buy mine. You need a broker that can trade on the US market not just the Australian. Of the major banks I believe ANZ does but check brokerage charges.

 

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