A question for RCI stock holders

[Sky Sweet]

One problem with companies that are publicly traded is that many of their stockholders are more concerned with its current profitability than the long term financial health of the company. How would you feel if Celebrity decided to invest more money into refurbishing some of their aging ships if this increased expenditure caused its stock to take a temporary dip?

[Cruisergal1208]

I do not invest for a quick profit. In it for the long haul. However, if news was very bad for the entire indudstry, then may have to look at selling. Some of the older ships are great and would benefit from refurbishing.

[canderson]

One problem with companies that are publicly traded is that many of their stockholders are more concerned with its current profitability than the long term financial health of the company. How would you feel if Celebrity decided to invest more money into refurbishing some of their aging ships if this increased expenditure caused its stock to take a temporary dip?

Well that's the mixed bag, isn't it? "Celebrity" doesn't decide anything, much less how to invest RCI cash. The RCI B.O.D. will make those decisions, and whether it values the Celebrity brand enough to consider any more upgrades to existing ships is certainly up for grabs.

 

If this announcement about the 220,000 ton ship is true, I think the handwriting on the wall couldn't be clearer. That's going to cost them a pretty penny.

[greeneg]

I agree that that is a very valid concern and it may well be time to take some money off of the table. I do not see how that size of ship could ever be full, and where would you take the thing?

[canderson]

I agree that that is a very valid concern and it may well be time to take some money off of the table. I do not see how that size of ship could ever be full, and where would you take the thing?

Seems to me that one of Clive Cussler's books from about two years back dealt with the concept of a "floating hotel". Perhaps someone in RCI's boardroom read it?:p

[excitedofharpenden]

One problem with companies that are publicly traded is that many of their stockholders are more concerned with its current profitability than the long term financial health of the company. How would you feel if Celebrity decided to invest more money into refurbishing some of their aging ships if this increased expenditure caused its stock to take a temporary dip?

I don't think it necessarily follows that increased expenditure means a dip in share price. It depends upon how the market sees it. If the company sells the concept well enough and the analysts think that it is a good idea for RCI to invest money in its older ships, then there won't be a detrimental effect on stock value.

 

Phil

[wolfganghowell]

The stock appears to be remaining fairly consistent and all indications are that the cruise business is continuing to expand. You would think saturation would be inevitable with all these new ships but I don't think RCI would be building the Freedom and now the Genesis class without some long range market research. We have our stock for long range benefits but with that stockholder benefit it helps keep us patient.