Farts Posted March 10, 2020 #301 Share Posted March 10, 2020 7 minutes ago, Aintnofun007 said: its amazing the stock is even up right now with this news lurking out there https://www.politico.com/news/2020/03/09/azar-cruise-ship-shutdown-coronavirus-124645 i agree. maybe something else bolstering the stock up? not sure Link to comment Share on other sites More sharing options...
atricks Posted March 10, 2020 #302 Share Posted March 10, 2020 Maybe this https://www.rclinvestor.com/press-releases/release/?id=1462 MIAMI, March 10, 2020 /PRNewswire/ -- Royal Caribbean Cruises Ltd (NYSE: RCL) today announced that due to the spread and recent developments related to the COVID-19 outbreak, the company has increased its revolving credit capacity by $550 million bolstering the company's liquidity. The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. The company is also planning reductions to the 2021 capital expenditures and operating expenses. The company had previously communicated that its 2020 guidance did not include the impact of the COVID-19 outbreak. Given the recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of COVID-19, the company is withdrawing its first quarter and full-year 2020 guidance. "These are extraordinary times and we are taking these steps to manage the company prudently and conservatively," said Richard D. Fain, chairman and CEO. "I am proud of the work our teams are doing to address this unprecedented situation." (more on the link) 1 Link to comment Share on other sites More sharing options...
MADflyer Posted March 10, 2020 #303 Share Posted March 10, 2020 10 minutes ago, atricks said: The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. The company is also planning reductions to the 2021 capital expenditures and operating expenses. With a reduction of $1.7 billion in capital expenditures, might that mean that planned 'Royal Amplified' refurbishments might be postponed? They obviously can not cut Odyssey and Wonder, so would that not just leave planned refurbishments to cut? Link to comment Share on other sites More sharing options...
Biker19 Posted March 10, 2020 #304 Share Posted March 10, 2020 2 minutes ago, MADflyer said: They obviously can not cut Odyssey and Wonder, so would that not just leave planned refurbishments to cut? I think Liberty is the only real Amp left, the other major capital expenditure is all the land developments planned - those could get cut. 2 Link to comment Share on other sites More sharing options...
MADflyer Posted March 10, 2020 #305 Share Posted March 10, 2020 Just now, Biker19 said: I think Liberty is the only real Amp left, the other major capital expenditure is all the land developments planned - those could get cut. They plan to cut 2021 as well. so I guess Liberty and Adventure could be affected by the cuts. It will be interesting to see what operational expenses they can reduce and how that might affect deployment. Link to comment Share on other sites More sharing options...
Forcemark Posted March 10, 2020 #306 Share Posted March 10, 2020 https://www.bloomberg.com/news/articles/2020-03-10/royal-caribbean-may-be-cut-to-junk-by-s-p-on-virus-travel-impact "Royal Caribbean may be cut to junk, while Carnival would join the lowest tier of investment grade." "S&P’s action takes Royal Caribbean one step closer to becoming a fallen angel. With two speculative-grade ratings, its $1.5 billion of debt would leave the Bloomberg Barclays investment-grade index. Carnival is rated A3 by Moody’s, equivalent to S&P’s A- rating." I hope RCL is considered too big to fail, I really would like to cruise on the Serenade again. Link to comment Share on other sites More sharing options...
ltlslick1 Posted March 10, 2020 #307 Share Posted March 10, 2020 Here’s one opinion of it:https://www.google.com/amp/s/seekingalpha.com/amp/news/3550124-nomura-sees-cruise-line-recovery-in-2021 Stock will continue to door poorly as virus information is released. Where it bottoms is anyone’s guess. I am averaging in. Long term this becomes a very profitable company again in my eyes. Link to comment Share on other sites More sharing options...
soloadventurer Posted March 10, 2020 #308 Share Posted March 10, 2020 https://www.bloomberg.com/news/articles/2020-03-10/royal-caribbean-may-be-cut-to-junk-by-s-p-on-virus-travel-impact Link to comment Share on other sites More sharing options...
Another_Critic Posted March 10, 2020 #309 Share Posted March 10, 2020 Current discussion here: Link to comment Share on other sites More sharing options...
The Grumpus Posted March 10, 2020 #310 Share Posted March 10, 2020 1 hour ago, MADflyer said: They plan to cut 2021 as well. so I guess Liberty and Adventure could be affected by the cuts. It will be interesting to see what operational expenses they can reduce and how that might affect deployment. Assuming they don't get shut down in the U.S over next few months, I would guess maybe less crew, less supplies offered aboard (i.e. food & drinks choices), less general maintenance, and possibly adjust itineraries to minimize fuel & operating costs of the ship itself. Link to comment Share on other sites More sharing options...
NavyCruiser Posted March 10, 2020 #311 Share Posted March 10, 2020 As we just turned Diamond, now u tellin' me they're Junk...? 1 1 Link to comment Share on other sites More sharing options...
molly361 Posted March 10, 2020 #312 Share Posted March 10, 2020 12 minutes ago, Another_Critic said: Current discussion here: SOOOOOO many threads so little moderation😇 4 1 Link to comment Share on other sites More sharing options...
The Grumpus Posted March 10, 2020 #313 Share Posted March 10, 2020 14 minutes ago, NavyCruiser said: As we just turned Diamond, now u tellin' me they're Junk...? Probably more like Cubic Zirconia. 1 Link to comment Share on other sites More sharing options...
Luke gs Daddy Posted March 10, 2020 #314 Share Posted March 10, 2020 Time to buy! Link to comment Share on other sites More sharing options...
LeesSummitCruiser1 Posted March 10, 2020 #315 Share Posted March 10, 2020 10 minutes ago, The Grumpus said: Probably more like Cubic Zirconia. tanzanite 1 Link to comment Share on other sites More sharing options...
The Grumpus Posted March 10, 2020 #316 Share Posted March 10, 2020 3 minutes ago, LeesSummitCruiser1 said: tanzanite Tanzanite + 1 Link to comment Share on other sites More sharing options...
Mapleleafforever Posted March 10, 2020 #317 Share Posted March 10, 2020 Now is the time that smart people start making a tonne of money on the market!!! Link to comment Share on other sites More sharing options...
PatMunits Posted March 10, 2020 #318 Share Posted March 10, 2020 1 hour ago, Forcemark said: "Royal Caribbean may be cut to junk, while Carnival would join the lowest tier of investment grade." This credit-worthiness downgrade will have material negative impact on the stock price. Numerous mutual funds are not permitted to hold securities below specific investment grade level. The fund managers may believe that RCL presents a lucrative investment opportunity at current price but with the downgrade they will be forced to sell their RCL holdings. This means there will be further negative pressure on the price, and consequently it means that now is not time to buy if all other things remain the same. 3 Link to comment Share on other sites More sharing options...
NateUpNorth Posted March 10, 2020 #319 Share Posted March 10, 2020 (edited) 1 hour ago, PatMunits said: This credit-worthiness downgrade will have material negative impact on the stock price. Numerous mutual funds are not permitted to hold securities below specific investment grade level. The fund managers may believe that RCL presents a lucrative investment opportunity at current price but with the downgrade they will be forced to sell their RCL holdings. This means there will be further negative pressure on the price, and consequently it means that now is not time to buy if all other things remain the same. So you're saying for every fund manager constrained by investment grade rating there isn't an offsetting value manager filling his boots right now? Edited March 10, 2020 by NateUpNorth Link to comment Share on other sites More sharing options...
Goodtime Cruizin Posted March 10, 2020 #320 Share Posted March 10, 2020 Of course the creditors will work w them! A cruise ship isn’t like a car, house, condo, or even a hotel. A bank just can’t flip a cruise ship. The creditors are going to ride out the storm as well. RCL might be struggling but it isn’t due to mismanagement. They’ll be fine in the long run. 2 Link to comment Share on other sites More sharing options...
NavyCruiser Posted March 10, 2020 #321 Share Posted March 10, 2020 But once they come back, Creditors will make them drop the "Royal" name & be replaced with "Regular Folks" Caribbean.... 1 Link to comment Share on other sites More sharing options...
ed01106 Posted March 10, 2020 #322 Share Posted March 10, 2020 1 hour ago, NateUpNorth said: So you're saying for every fund manager constrained by investment grade rating there isn't an offsetting value manager filling his boots right now? You can find bond managers that will buy junk bonds, but they demand a much higher interest rate than higher grade bonds. Higher interest rates mean more cost, thus lower earnings and cash flow. This can result in a downward spiral. 1 Link to comment Share on other sites More sharing options...
taglovestocruise Posted March 10, 2020 #323 Share Posted March 10, 2020 6 hours ago, MADflyer said: With a reduction of $1.7 billion in capital expenditures, might that mean that planned 'Royal Amplified' refurbishments might be postponed? They obviously can not cut Odyssey and Wonder, so would that not just leave planned refurbishments to cut? Allure goes in next week, 125 million +, in dry dock for 58 days. Bought stock yesterday at 48.75, if trump calls a temp end to cruises I will double down. Also picked up some carnival at 21.88 yesterday. 3 1 Link to comment Share on other sites More sharing options...
Baron Barracuda Posted March 10, 2020 #324 Share Posted March 10, 2020 5 hours ago, PatMunits said: This credit-worthiness downgrade will have material negative impact on the stock price. Numerous mutual funds are not permitted to hold securities below specific investment grade level. The fund managers may believe that RCL presents a lucrative investment opportunity at current price but with the downgrade they will be forced to sell their RCL holdings. This means there will be further negative pressure on the price, and consequently it means that now is not time to buy if all other things remain the same. Presume you are talking about bond fund managers having to sell. Not typically an issue for equity funds. If it was they couldn't hold high flyers like Tesla and Netflix. 1 Link to comment Share on other sites More sharing options...
NateUpNorth Posted March 11, 2020 #325 Share Posted March 11, 2020 13 hours ago, Baron Barracuda said: Presume you are talking about bond fund managers having to sell. Not typically an issue for equity funds. If it was they couldn't hold high flyers like Tesla and Netflix. I think you're correct. If I'm invested with a "value manager" I'd be expecting him/her to be spending like a drunken sailor right now. Link to comment Share on other sites More sharing options...
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