SS/RCCL Finances: Improving, Options, Questions??!!

[highplanesdrifters]

On 5/7/2024 at 12:53 PM, Neilio said:

I have been writing covered calls

 

An option trader buddy referred to selling calls and puts as picking up dimes in front of a steamroller. You can make a lot of money, but you really need to pay attention.  😃 At least yours are covered calls!

[TLCOhio]

On 5/12/2024 at 9:36 AM, highplanesdrifters said:

An option trader buddy referred to selling calls and puts as picking up dimes in front of a steamroller. You can make a lot of money, but you really need to pay attention.  😃 At least yours are covered calls!

 

Oh, "calls and puts" are way above my playing field and financial expertise.  I will let others enjoy putting chips down and playing at that "Wall Street Casino".  Appreciate these comments and follow-ups.  Keep it coming. 

 

From a Wall Street Journal-connected financial news website yesterday morning, they had this headline: “Stock Market Crash Warning: Don’t Get Caught Holding These 3 Cruise Stocks” with these highlights: “The cruise industry has long been a popular choice. However, behind the glitz and glamor, the industry has been grappling with several inherent weaknesses. Those have left the sector particularly vulnerable to economic downturns and unforeseen crises, causing investors to question the long-term viability of these cruise stocks.  One of the most significant weaknesses of the cruise industry is its heavy reliance on discretionary spending. Unlike essential goods and services, cruises are often seen as a luxury. Some consumers easily forego such treats during times of financial uncertainty. Also, high interest rate environment and inflationary pressures have battered these cruise stocks to avoid.”

 

As to RCL, they zero in and shared:  "Royal Caribbean has demonstrated improvement in its financial results. However, the company is grappling with a substantial debt burden. Notably, it has around $20 million in cash and $21 billion in debt.   However, RCL is projecting strong performance for 2024, having raised its guidance due to robust demand. The company had a notable debt reduction in 2023, when RCL paid off approximately $4 billion.   For 2024, RCL has scheduled significant capital expenditures totaling around $3.3 billion. This price tag was primarily for its new ship orders, including the Utopia of the Seas and Silver Ray. Also, the company anticipates a capacity increase of 8.5% compared to 2023."

 

Interesting background and financial details!!   And, Royal Caribbean is in somewhat better financial shape than both Carnival and Norwegian as per how Wall Street traders view these various stocks.  This story also highlighted some factors involving OneSpaWorld Holdings that services major cruise lines.    

 

Reactions, comments, questions and predictions??

 

Full story at:

https://markets.businessinsider.com/news/stocks/stock-market-crash-warning-dont-get-caught-holding-these-3-cruise-stocks-1033370074

 

THANKS!  Enjoy!  Terry in Ohio

 

Canada 2022/2023: Scenic visuals, details from Canada Maritimes (Nova Scotia, New Brunswick, Prince Edward Island, Cape Breton Island).  Plus, new from Aug. 2023, exploring historic/charming Quebec City.    Visual/Info Summaries:

www.flickr.com/photos/196555480@N08/albums

[TLCOhio]

From CNBC, the cable financial news network, late this morning, they had this headline: “Powell says inflation has been higher than thought and expects rates to hold steady” with these highlights: “Federal Reserve Chair Jerome Powell reiterated Tuesday that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period.  Speaking to the Foreign Bankers’ Association in Amsterdam, the central bank leader noted that the rapid disinflation that happened in 2023 has slowed considerably this year and caused a rethink of where policy is headed.  'We did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,' Powell said. 'What that has told us is that we’ll need to be patient and let restrictive policy do its work.'  While he expects inflation to come down through the year, he noted that hasn’t happened so far.”

 

Looks like interest rates are going to stay high much longer than expected and hoped.  Right or wrong?

 

Full story at:

https://www.cnbc.com/2024/05/14/powell-says-inflation-has-been-higher-than-thought-and-expects-rates-to-hold-steady.html

 

THANKS!  Enjoy!  Terry in Ohio

 

India to Singapore 2024: Live/Blog with many visuals, including “Golden Triangle”, Japan, Sri Lanka, Thailand and Malaysia:

https://boards.cruisecritic.com/topic/2992045-live-terryohio-india-to-signapore-silver-moon-rising-pix’s/

[highplanesdrifters]

Havent posted any charts in awhile. Big breakout in the 10 year after the the inflation #'s this a.m. Flag formation drops it to 4.11, fast.

Mr. Bondelero @RetiredandTravel can probably tell us what's really going on.😄

[RetiredandTravel]

19 hours ago, highplanesdrifters said:

Havent posted any charts in awhile. Big breakout in the 10 year after the the inflation #'s this a.m. Flag formation drops it to 4.11, fast.

Mr. Bondelero @RetiredandTravel can probably tell us what's really going on.😄

 

 

Looks reasonable. You have a great track record and I hope you are right.

 

I have been encouraged that the ten year has held the 07/08 5.25% high and the recent increase held the 2023 5%. Breaking the 5 1/4 would have been very concerning to me.

 

I tend to think that inflation will be under control because of continued productivity gains from technological advancements.  The Federal Debt needs to be addresssed or we could have serious long term issues and the current supply could slow rate decreases.

 

Given the inverted yield curve I only have ~20% of fixed income in intermediates (5-10).  I find the best risk/reward in the 0-3 year area.  If rates go down a lot I'll wish I had more duration. 

 

 

[highplanesdrifters]

2 hours ago, RetiredandTravel said:

 

 

I tend to think that inflation will be under control because of continued productivity gains from technological advancements. 

 

Agree.

I know it's going down because recently I was able to get reservations at restaurants usually unattainable. Although the airport was crazy crowded.

[RetiredandTravel]

1 hour ago, highplanesdrifters said:

 

Agree.

I know it's going down because recently I was able to get reservations at restaurants usually unattainable. Although the airport was crazy crowded.

 

Great indicator actually.  Also seeing the Rib Eye being replaced with the Flank steak.🐄

 

[TLCOhio]

Also in this summary, was this key concluding point: "Even with Monday’s rally, Norwegian’s stock has been recently underperforming its peers. The stock has gained 3% over the past three months, while shares of Royal Caribbean Group have soared 28.8% and Carnival Corp.’s stock has advanced 6.8%. Meanwhile, the S&P 500 has gained 7% in the past three months."

 

Thanks!!  Enjoy.  Terry in Ohio

[TLCOhio]

From the Wall Street Journal late this afternoon, here below is their chart showing that Norwegian kept up, UP, those early morning, dramatic gains.  Both Royal Caribbean and Carnival were increasing by somewhat similar, sustained margins during the day's trading. In fact at one point today, RCL hit a 52-week peak value of $150.90.   Good news?  How long will this trend continue?

 

 

From the WSJ, they also had this headline: “Cruise Stocks Float Higher After Norwegian Lifts Outlook” with these highlights: “Norwegian shares were up 8.9% to $17.14 in midday trading, on pace for its largest percent increase since February. Shares are still down about 14% this year.  Norwegian said ahead of an investor day Monday that it had continued to see strong demand and record bookings so far this year, prompting the company to raise its outlook for adjusted earnings per share to $1.42 from $1.32.”

 

Full story at:

https://www.wsj.com/articles/cruise-stocks-float-higher-after-norwegian-lifts-outlook-062eded8

 

THANKS!  Enjoy!  Terry in Ohio

 

Abu Dhabi vs. Dubai?  Many different UAE tips, options, ideas, visuals, etc. with more than 20,000 views at:  https://boards.cruisecritic.com/topic/2521493-abu-dhabi-vs-dubai-procon-factors/page/5/#comment-66634467

[TLCOhio]

After Monday's big stock market gains for the three cruise line stocks, things continued STRONG today, rising over 2% in value during Tuesday's trading.  Below is the Royal Caribbean chart from the Wall Street Journal.  This stock sits now at nearly double from its low point during the most recent 52-weeks.  Amazing??

 

THANKS!  Enjoy!  Terry in Ohio