A question about 100 shares CCL

[shepp]

Got that right.

 

I bought CCL for the OBC. The dividends and any capital appreciation are nice extra. I paid about $26 per share 5 years ago. I have gotten over $4000 in OBC, so I am thrilled.

 

Yes, I did forget, in my calculations, to factor in a dollar a year in dividends, so the example I used, the actual total rate of return would have been something like maybe 60% in eight years, still way below what many equally or less risky investments would have returned.

 

If someone knows they're going to take lots of long cruises every year, then CCL, despite its lackluster performance, makes a lot of sense to hold. And the OBCs, assuming they'll go on this way for the foreseeable future, makes sense. (Though considering the recent downward adjustments in OBC benefits, that's less than a 100%.) In that sense, it's a low-risk investment for someone who will never need to cash out the principal.

 

But though I''ve cruised enough to be Elite, I'm only planning one 17-day cruise for next year, and CCL's plunge yesterday and its continued slide today, while the Dow is actually up a bit, has more than wiped out, on paper, any OBC benefits I'll get for that cruise.

[shepp]

And the OBCs, assuming they'll go on this way for the foreseeable future, makes sense.

 

Well, that sentence made no sense. Should have said, "And the OBCs, assuming they'll go on this way for the foreseeable future, make the difference."

 

It really depends on what your individual situation is. If you're the type whose account is always in the red at the end of a cruise, then great. Last cruise, we ended up owing on our final bill, too.

 

But we're not Princess' favorite type of customers. We rarely buy drinks, find most shore excursions less attractive than what we can DIY, and couldn't care less about spa treatments. Therefore, depending on the cruise, we sometimes haven't spent all the OBCs from our stock, FCCs, and TA promotions. Now that that leftover money is once again only good onboard, use it or lose it, it's a lot more like play money than the return from other investments is. Is $30 spent on an onboard bottle of booze that I could buy for $15 from BevMo to be counted as $30 return on investment, or half that? And should Princess decide that gratuities can't be written off against any sort of OBCs, that would devalue the stock's "return" even more.

Edited October 8, 2014 by shepp

[Pia1913]

Well, that sentence made no sense. Should have said, "And the OBCs, assuming they'll go on this way for the foreseeable future, make the difference."

 

It really depends on what your individual situation is. If you're the type whose account is always in the red at the end of a cruise, then great. Last cruise, we ended up owing on our final bill, too.

 

But we're not Princess' favorite type of customers. We rarely buy drinks, find most shore excursions less attractive than what we can DIY, and couldn't care less about spa treatments. Therefore, depending on the cruise, we sometimes haven't spent all the OBCs from our stock, FCCs, and TA promotions. Now that that leftover money is once again only good onboard, use it or lose it, it's a lot more like play money than the return from other investments is. Is $30 spent on an onboard bottle of booze that I could buy for $15 from BevMo to be counted as $30 return on investment, or half that? And should Princess decide that gratuities can't be written off against any sort of OBCs, that would devalue the stock's "return" even more.

 

I can always use another purse. :rolleyes:

[sailor1362]

are these benefits for all shareholders or only for US customers?

[paul929207]

are these benefits for all shareholders or only for US customers?

All shareholders

[dorisis]

Be sure to buy lots of FCCs. You can get the FCC and Shareholder OBCs. You can also add in the Military OBC if you are eligible and eventually the Loyalty OBC.

 

And the Princess Credit Card can add refundable OBCs.

[Astro Flyer]

are these benefits for all shareholders or only for US customers?

http://boards.cruisecritic.com/attachment.php?attachmentid=317604&d=1403910758

 

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc1NDY5fENoaWxkSUQ9LTF8VHlwZT0z&t=1

 

These links provide info on this program however not sure how you would get it in Italy for a Princess cruise.

[sailor1362]

http://boards.cruisecritic.com/attachment.php?attachmentid=317604&d=1403910758

 

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc1NDY5fENoaWxkSUQ9LTF8VHlwZT0z&t=1

 

These links provide info on this program however not sure how you would get it in Italy for a Princess cruise.

Thank you, I will ask to Princess through my Travel Agent.

[I_r_a]

Share price is $36.18 @13:13 on 10/10

 

Ira

[shepp]

I can always use another purse. :rolleyes:

 

Whereas I could cheerfully do without any of those $10 "bargain" watches that stop working three days after you get home.

[Pia1913]

Whereas I could cheerfully do without any of those $10 "bargain" watches that stop working three days after you get home.

 

Never bought one of them; too big for my wrist. But I have bought purses; good ones, not the $10 kind.

[windsor26]

Someone a thread said it was daft to buy the shares unless you kept selling them and re-buying just before your next cruise - how mad!!

 

I bought mine in sterling from UK in 2009 April

Up to date the value of them is sterling pounds 1100 more for the 100 I have

 

I have received about $25 per quarter dividend every year approx $525 in hand

 

I have received back in obc from cruises

approximately $3825 which is more than I paid for them

 

Why would someone keep adding the fees required for sale and purchase when you can sit back and 'coin it in' All amounts mentioned approx of course

 

(I wish we had put all our super into CCL shares):D:D

[windsor26]

And the Princess Credit Card can add refundable OBCs.

 

I keep asking but no Princess credit card available in Australia:confused::confused:

[Pia1913]

Someone a thread said it was daft to buy the shares unless you kept selling them and re-buying just before your next cruise - how mad!!

 

I bought mine in sterling from UK in 2009 April

Up to date the value of them is sterling pounds 1100 more for the 100 I have

 

I have received about $25 per quarter dividend every year approx $525 in hand

 

I have received back in obc from cruises

approximately $3825 which is more than I paid for them

 

Why would someone keep adding the fees required for sale and purchase when you can sit back and 'coin it in' All amounts mentioned approx of course

 

(I wish we had put all our super into CCL shares):D:D

 

We've had CCL since 1998. Think about all that $$$ that's come our way. I'm with you! :D

[shepp]

Share price is $36.18 @13:13 on 10/10

 

Which means the price is just about where it was 4 years ago, while the Dow is up by 50%, as is the net asset value of my moderate risk Vanguard Wellington Fund (which, as does CCL, also pays out dividends).

 

So if you have no regard for the actual equity in the investment, intend to let it sit at your broker's until you die, and know you'll be sailing at least a few weeks a year, every year, CCL looks like a good deal. But - to use my four year example - you would have to get $450 a year in stockholder OBCs (meaning being onboard, depending the length of each cruise, from 4 to 8 weeks every year) since 10/10 to make it a better investment than buying Wellington and just cashing out $300 or 400 a year and using that toward cruise expenses, should you end up cruising.

 

While past performance is no guarantee of etc., would anybody here who doesn't cruise at Pia's level, or who wasn't lucky enough to get in at the absolute bottom, seriously argue that CCL has been a great investment over the last four or five bull-market years?

Edited October 10, 2014 by shepp

[paul929207]

Which means the price is just about where it was 4 years ago, while the Dow is up by 50%, as is the net asset value of my moderate risk Vanguard Wellington Fund (which, as does CCL, also pays out dividends).

 

So if you have no regard for the actual equity in the investment, intend to let it sit at your broker's until you die, and know you'll be sailing at least a few weeks a year, every year, CCL looks like a good deal. But - to use my four year example - you would have to get $450 a year in stockholder OBCs (meaning being onboard, depending the length of each cruise, from 4 to 8 weeks every year) since 10/10 to make it a better investment than buying Wellington and just cashing out $300 or 400 a year and using that toward cruise expenses, should you end up cruising.

 

While past performance is no guarantee of etc., would anybody here who doesn't cruise at Pia's level, or who wasn't lucky enough to get in at the absolute bottom, seriously argue that CCL has been a great investment over the last four or five bull-market years?

I paid about $26 a share in 2009. Since then, I have about $500 in dividends and over $4000 in OBC, The stock has risen so I have about $3600. Add in the dividends and OBC and I am up to about $8100. I ain't complaining.

[aikensbest]

OK, but just for rough comparison, if aikensbest had bought the broad-based Vanguard Index 500 Fund 6 years ago instead of CCL, his money would have nearly tripled instead of having returned what his Carnival stock did, which I figure is something like 35 or 40% in total returns. Plus, most of that gain was dependent on his spending money to go cruising so he could get that 800 dollars in OBCs. And now that shareholder OBCs are non-refundable, future OBC returns either go to gratuities or have to be spent while onboard on overpriced excursions, pricey cocktails, or bingo cards to be worth anything at all. If he'd held onto the Vanguard Fund till today, he could have sold enough shares this afternoon (down 1.5% at closing compared to CCL's 5.5% loss) to get $7000 in non-play-money to spend on anything he wanted to anytime he wanted to…and still ended up with the same $3700 in the market he has now.

 

It's not that I regret buying CCL, but I'm certainly glad most of my investments, adjusted for risk, have done considerably better. I know that hindsight is 20/20, but comparatively speaking, maybe CCL was not the best way for aikensbest to have invested that cash?

 

I have other investments that have provided more and some that have provided less....however I am happy with the return on CCL considering I don't have to sell anything to get the benefits when I cruise, and the value remains.

[Skai]

Someone a thread said it was daft to buy the shares unless you kept selling them and re-buying just before your next cruise - how mad!!

 

I bought mine in sterling from UK in 2009 April

Up to date the value of them is sterling pounds 1100 more for the 100 I have

 

I have received about $25 per quarter dividend every year approx $525 in hand

 

I have received back in obc from cruises

approximately $3825 which is more than I paid for them

 

Why would someone keep adding the fees required for sale and purchase when you can sit back and 'coin it in' All amounts mentioned approx of course

 

(I wish we had put all our super into CCL shares):D:D

 

 

Because some of us still have a few more decades before we retire, and perhaps we would like our money to do a little more work for us before we do so.

 

FWIW, the commission costs for an online trading brokerage average around $10-$20(USD) per round-turn trade. Gone are the days when one had to ring up the broker on the blower and fork out a chunk more in fees.

 

CCL has been a consistent good swing trade over the last few years, having stayed in a roughly $30-$40 range.

 

Some may be content to simply benefit from the OBC (akin to a bonus income dividend), while others may be content to also ride the waves and glean a tad more yield from an actual investment standpoint. Congrats on buying your shares when they were near the absolute rock bottom during the extreme market downturn 5 years ago. Imagine how much additional shipboard account ducats one could have had employing the above swing/range trading strategy over the last few years.

 

For persons that may only have the time to cruise a couple of times per year, one could have been successful employing that entry/exit strategy with CCL.:cool:

 

To each their own.

 

However it deserves mention that: A little common sense goes a long way when it comes to observing the reliable tide going abnormally out further than it usually ever does. The smart investor (or 'market expert' as alluded to early in this thread) knows when to run for higher ground, while the uneducated run down to the sea shore to gawk at the exposed sea bed, unknowing of the tsunami that is looming just beyond the horizon.:eek:

 

 

 

 

 

 

 

Edited October 11, 2014 by Skai

[jammen]

Only one credit ($$$$) per state room, depends what type of cabin and how many nights are booked.

[swedish weave]

Too bad some of you didn't buy Enron and invest with Bernie Madoff to balance your portfolios !!! LOL

 

I love success stories !!!

[Lovetocruiseprincess]

What's the earliest you can request stockholders OB credit prior to the sailing date?

[CCFC]

Only one credit ($$$$) per state room, depends what type of cabin and how many nights are booked.

 

The type of cabin is irrelevant.

[paul929207]

I believe you can request the Shareholder OBC anytime after making final payment

[Astro Flyer]

Only one credit ($$$$) per state room, depends what type of cabin and how many nights are booked.

It doesn't matter what type of cabin booked for shareholder or military credit.

[Astro Flyer]

What's the earliest you can request stockholders OB credit prior to the sailing date?

 

I believe you can request the Shareholder OBC anytime after making final payment

This application form says "shares certificate and brokerage statement should be dated no earlier than 3 months prior to cruise departure date". Thus as Paul said applying after final payment meets that requirement & since enforcing this procedure applications are being approved within hours or a couple do days. :)

 

http://boards.cruisecritic.com/attachment.php?attachmentid=317604&d=1403910758

Edited October 11, 2014 by Astro Flyer