What does RCCL stock price drop mean.

[NMTraveller]

On 10/10/2022 at 10:10 AM, BermudaBound2014 said:

 

Yes, most stocks have taken a tumble. The Dow Jones is represented by the yellow line and down 15% over the last year.

 

However; I'm unaware of any industry that has take a tumble to extreme that the cruises have in the last year. CCL is down 71%. RCL is down 50% and NCLH is down 56%.  This is more than just interest rates and fear of recession. The cruise lines stocks are down because of the tremendous debt they have incurred (which continues to mount each and every day). 

 

This

[NMTraveller]

On 10/10/2022 at 11:37 AM, AmCam said:

You have to wonder about the effect of inflation on people's travel budgets, too, though I still feel that cruising is a good value overall.

Too many restrictions IMHO.  I can travel without restrictions in the USA.  The restrictions overseas are still a bit of a mess.

[Arizona Wildcat]

37 minutes ago, NMTraveller said:

Too many restrictions IMHO.  I can travel without restrictions in the USA.  The restrictions overseas are still a bit of a mess.

Other than Australia, easy to travel to almost anywhere in the World.  The requirements to travel are little different in most countries for those that are vaccinated than pre covid.  Just got back from a trip to Europe and Canada.  No restrictions, no covid requirement and no visa.

[grandgeezer]

1 hour ago, XuGator said:

Who cares ? Investors are making money on them and 25% in the past month is enormous. Sorry you missed the boat. No pun intended. 

I don’t know where you got your information as I came up with 17.49% gain  which is a long way from 25%. Two things, you don’t make, or lose money until you sell, and depending on what you paid initially, you either made money or cut your loss by 17.49%.

[NMTraveller]

16 minutes ago, Arizona Wildcat said:

Other than Australia, easy to travel to almost anywhere in the World.  The requirements to travel are little different in most countries for those that are vaccinated than pre covid.  Just got back from a trip to Europe and Canada.  No restrictions, no covid requirement and no visa.

No tests?  No vaccination requirements?  That would be normal.

 

We are still trying to go on a river cruise to Europe...  Still the draconian restrictions...

 

Thanks for the update.  What about the rest of the world?  Asia?

Edited October 29, 2022 by NMTraveller

[BigAl94]

2 hours ago, NMTraveller said:

No tests?  No vaccination requirements?  That would be normal.

 

We are still trying to go on a river cruise to Europe...  Still the draconian restrictions...

 

Thanks for the update.  What about the rest of the world?  Asia?

What Draconian restrictions? All European countries and UK are open.

[XuGator]

8 hours ago, grandgeezer said:

I don’t know where you got your information as I came up with 17.49% gain  which is a long way from 25%. Two things, you don’t make, or lose money until you sell, and depending on what you paid initially, you either made money or cut your loss by 17.49%.

Where do I get my information ? On October 11th (the day after this post originated and everyone chimed in ) the low was 38.84.  Now less than 3 weeks later it is 52.67. That’s actually more than a 35% gain.  So your 17% isn’t even close. Secondly the response was to this post from 3 weeks ago when everyone was talking about how scary this stock was etc etc etc. Point is simple - anyone claiming that RCL is not a good stock (on Oct 10th) ,  is looking really bad right now. See link below for price details and let me know if you need help with the math. 
 

https://finance.yahoo.com/quote/RCL/history/

Edited October 29, 2022 by XuGator

[XuGator]

8 hours ago, NMTraveller said:

No tests?  No vaccination requirements?  That would be normal.

 

We are still trying to go on a river cruise to Europe...  Still the draconian restrictions...

 

Thanks for the update.  What about the rest of the world?  Asia?

This is just turning ridiculous. Draconian restrictions - lol. Most of the other counties eased restrictions much earlier than the US. We just traveled all over Europe this summer and there aren’t any restrictions anywhere. The only slight issue was flying back to the US (which you claim has none ) until they followed suit months later. 

[grandgeezer]

3 hours ago, XuGator said:

Where do I get my information ? On October 11th (the day after this post originated and everyone chimed in ) the low was 38.84.  Now less than 3 weeks later it is 52.67. That’s actually more than a 35% gain.  So your 17% isn’t even close. Secondly the response was to this post from 3 weeks ago when everyone was talking about how scary this stock was etc etc etc. Point is simple - anyone claiming that RCL is not a good stock (on Oct 10th) ,  is looking really bad right now. See link below for price details and let me know if you need help with the math. 
 

https://finance.yahoo.com/quote/RCL/history/

I based my response based on the date you posted yours, October 28 and the preceding 30 days. Ask the people who owned it, in early 2020 when it was $132+ and paying $3.16 per share, and if they still own it, what they think of the stock. Using my timeframe, even Norwegian out performed Royal Caribbean.

My math skills are just fine, at least that’s what my financial portfolio tells me, and I did it all without any cruise line stocks.

[pickle11]

On 10/10/2022 at 8:12 AM, weregoingcruising said:

Lower fares in our future?

Yeah.  Going out of business sale.

[GreenFamily]

13 hours ago, NMTraveller said:

Ahem...  They are overleveraged on debt.

 

Ahem...  Are they making a profit yet?

 

Just call me Captain Obvious.  

 

Again and again...

Cruise lines did not get any covid relief, that I know of, because they are incorporated in foreign countries like Malta. 

I wonder if Americans will choose land vacations in Europe since the euro is losing its value.

 

I expect fuel shortages are going to be a problem for most industries. 

[Baron Barracuda]

Suggest everyone put a pin in this discussion for a week as RCL is scheduled to report earnings and update their business outlook on 11/4.

[chisoxfan]

On paper the cruise lines are a financial disaster. That said, this is old school stock valuation. Everything is driven by the distortions of the Fed. Now if I could only find out what Jay Powell is buying....

[DirtyDawg]

On 10/28/2022 at 11:38 PM, NMTraveller said:

Oh.  I will be so sad...

 

If you want to talk returns we must at least talk 5 years or more.

 

I don't suspect RCL will do well going into a recession as history has shown.

 

Again changing screen name to Captain Obvious...

 

If they cannot make money during positive GDP how are they going to do in the coming recession next year?  Asking for a friend.

 

Real valuations have to do with profits of which RCL has none lately and their outlook is sinking...

 

Just one comment. Real valuations have to do with cash flows, not profits. Profits are, in a lot of cases, just an accounting creation and belong in the 'Fiction' section of the book store. Cash flows are in the 'Non Fiction' section. 😉

Edited October 30, 2022 by DirtyDawg

[volk904]

Thinking it was way under valued I purchased 100 shares for around $36 this summer to get the credits as a bonus. Then it dropped to $32 and I purchased another 105 shares in my IRA thinking the price was crazy low since it was in the $80 range in May.  Since this thread started RCL stock has been on a steady climb. Now over $50. I am happy.  This week Royal will release Q3 earnings. If they show a profit for the first time since 2020 they may take a big jump. If not they could drop some.  Anyone who has cruised this summer know the ships are pretty full.  Should be a good report.