Royal Caribbean shares fall

[wonlife64]

What is OBC (On-Board Credit)? How does that work?

[cruisenfever]

What is OBC (On-Board Credit)? How does that work?

For owning 100 shares of RCI stock you can get an onboard credit. Please refer to this site for further information. The date has been extended to all cruises booked by May 31, 2007 (and will most probably be extended again)

 

http://media.corporate-ir.net/media_files/nys/rcl/reports/Shareholder_Benefit_2005.pdf

[traveler/]

This is the second time I've tried to post this. I keep getting the "dreaded white screen".

 

We are planning to buy 100 shares of Royal Caribbean stock. Because of the recent price drop I read that we should wait 4-6 weeks. According to my calculations, if we buy the stock now we'll get about $650 in OBC over the next year, We're doing a b2b Monarch in a JS in Feb, a 5 day Caribbean in June in a JS, a 15 day Hawaii on the Radiance (D-1) in Sep and a 12 day Souther Caribbeean on the Explorer OTS in a JS.

 

Is there really any reason to wait to buy the stock?

 

Thank you for all your help.

 

Hoping to be Diamond by Sep 2007.

Good to see you are applying facts to your analysis. More FYI:

1. Dividend to holder of record 3/1, paid 3/30/07, 15 cents p/share. $15 on 100.

2. Applying for OBC is simple, but give RCL some lead time.

3. Year high is currently 46.77.

4. Your Feb. and June cruises get you $50 for each, including 2 (50's) on B 2 B.

5. Depending on when you bought, it may go up or down, BUT looks like you would hold the 100 share minimum at least until your last 07 cruise.

[traveler/]

If I was buying RCI stock I would probably say buy it in thirds like they say on the Motley Fool. Buy 34 shares now, see what the market does 33 more shares, then 33 more in a couple of months. Easy way to dollar cost average. If you want to know the true financial picture of a company, read the 10-Q's and 10-K, stock price does not necessarily give you the best indication (think irrational exuberance).

Motley Fool dollar cost averaging model is a good one, but IMO does not apply that well in your scenario. To get the OBC, you must have 100 shares minimum. So, you would not be eligible until you purchased 100 which would take 3 transactions. Unless you are cruising later in the year, you might miss OBC. Then, there is the buy commission. Example: $10 commission on 34 shares= 33 cents ea. If your commission is $35, you are behind $1.03 p/share right off the bat.

Do a calculation of the value of the 3 factors. I did, and bought.

IMO, you are correct about reading up on the fundamentals and analyst ratings, etc. before you buy.

Remember there are 3 main factors here: 1) stock appreciation potential, 2) dividend, 3) on board credits. Then, decide when to buy.

% wise, I have done very well with RCL stock because of all 3 factors. I might just buy more "on this dip".

[rednancy1]

negc and traveler/....thank you for your responses.

 

We're not day traders or speculators or anything like that. We will buy at least 100 shares of RCI this week. With all the OBC's I figure over the course of five years the stock won't cost us anything. It's a win win situation. Add this to becoming Diamond in July 2007, it's the best of all worlds.

[BuyReallyLow]

Just a point - RCL does not know HOW long you have owned your stock, so it is possible to (1) purchase the stock (2) next day print off a statement online from your clearning firm (3) send it to Royal Caribbean along with the form and (4) sell the stock. You could do this within two days - be sure to factor any commission costs into your equation, but it is possible.... (been there, done that!)

 

Have no opinion on the stock itself (would be illegal for me to have an opinion on an onboard site.) - but obviously love the cruiseline!

[vacation bound]

Why would you say "wave season bookings being not up to expectations " are not unusual? I would say the bean counters have a pattern and an expectation and it is disappointing to them or they wouldn't have said it.......

 

 

IMHO the mild weather in the Northeast has made a significant impact in bookings. Connecticut did not have its first measurable inch of snow until February which is unheard of. The average temperatures for Dec and Jan in the northeast were 12-15 degrees over average for the month with no snow - therefore no sudden "urge to splurge" when a cruise ad would come on tv. :cool:

[ILoveScotland]

I bought mine today - I now get OBC on Cunard, Holland America, Princess, Celebrity and RCI for owning RCL & CCL stock.

 

How do you get OBC for Cunard, Holland America and Princess? And what is CCL? I now have about 15 shares of RCCL with thoughts of buying enough to make 100 within the next few weeks.

[traveler/]

 

How do you get OBC for Cunard, Holland America and Princess? And what is CCL? I now have about 15 shares of RCCL with thoughts of buying enough to make 100 within the next few weeks.

Carnival Cruise Lines.:)

Stockholder program also.

[traveler/]

Just a point - RCL does not know HOW long you have owned your stock, so it is possible to (1) purchase the stock (2) next day print off a statement online from your clearning firm (3) send it to Royal Caribbean along with the form and (4) sell the stock. You could do this within two days - be sure to factor any commission costs into your equation, but it is possible.... (been there, done that!)

 

Have no opinion on the stock itself (would be illegal for me to have an opinion on an onboard site.) - but obviously love the cruiseline!

I personally am very pleased with the stockholder program and choose to think long term about ownership.

[Mikew0805]

Did anyone even listen to the conference call this morning. I did! Actually RCCL had the best 4th qtr. in history, and even though the wave period is slow, it's not that far behind. Their current projections have them to book 22% of the year in the 10 week wave season, which with everything being equal is only 19% of the actual year. They specifically said that wave season is no longer what it once was for the cruise industry. I honestly do not know what drove the stock down as the forecast for the year seems good.

 

They did mention that the option for the 2nd Genesis class ship is coming due in March, and by the sound of the way a certain question was answered, they may not be sure that they will exercise it.

 

You can still listen to the pod cast at rclinvestor.com I listen every quarter.

 

-Mike

[traveler/]

Did anyone even listen to the conference call this morning. I did! Actually RCCL had the best 4th qtr. in history, and even though the wave period is slow, it's not that far behind. Their current projections have them to book 22% of the year in the 10 week wave season, which with everything being equal is only 19% of the actual year. They specifically said that wave season is no longer what it once was for the cruise industry. I honestly do not know what drove the stock down as the forecast for the year seems good.

 

They did mention that the option for the 2nd Genesis class ship is coming due in March, and by the sound of the way a certain question was answered, they may not be sure that they will exercise it.

 

You can still listen to the pod cast at rclinvestor.com I listen every quarter.

 

-Mike

Thank you for the insight. I use several sources to decide when to buy or sell over and above the 100 share minimum. RCL is probably one of the best investments I have made when I factor in stock appreciation, on board credit, and dividends.

[traveler/]

negc and traveler/....thank you for your responses.

 

We're not day traders or speculators or anything like that. We will buy at least 100 shares of RCI this week. With all the OBC's I figure over the course of five years the stock won't cost us anything. It's a win win situation. Add this to becoming Diamond in July 2007, it's the best of all worlds.

Congratulations on making diamond soon. :)

You have a great attitude!

[traveler/]

For owning 100 shares of RCI stock you can get an onboard credit. Please refer to this site for further information. The date has been extended to all cruises booked by May 31, 2007 (and will most probably be extended again)

 

http://media.corporate-ir.net/media_files/nys/rcl/reports/Shareholder_Benefit_2005.pdf

There is a newer site that has the newer dates for the program. I have bookmarked it or "favorite" it for my use. It also answers other questions.

http://www.rclinvestor.com/phoenix.zhtml?c=103045&p=irol-shareholderbenefit

[zebra36]

RE: OBC

Though this has been renewed in the past it is not set up as a permanent stockholder benefit and is subject to annual review. So at some point they may figure out that all of us holding just 100 shares are becoming a drag on the bottom line, though I hope that doesn't happen anytime soon.

[dachshunddoglover]

Okay - I'm going to post my question again. Where can I buy the 100 shares of stock without a large fee? Thanks - E-Beth:D

[benolathe]

Okay - I'm going to post my question again. Where can I buy the 100 shares of stock without a large fee? Thanks - E-Beth:D

 

Yes, I would like to know this too. :)

[piercetc4]

has anyone used ameritrade to buy the stock? we are thinking of buying some rcl stock too-

[traveler/]

Okay - I'm going to post my question again. Where can I buy the 100 shares of stock without a large fee? Thanks - E-Beth:D

TD Ameritrade appx. $10.

[Cruising89143]

There is about four or five articles on Seatrader Inside News about RCI and Carnival is also mentioned.

 

Wave season has not been as strong as they thought plus pricing for the Caribbean is still down. Europe remains a very strong market for RCI. Carnival also lost a little yesterday in their stock but not as much as RCCL.

[piercetc4]

i just looked at the 10 yr chart on the msn money site- may wait to see what the stock does in next few days-

ameritrade sounds good-

[catnt2]

TD Ameritrade appx. $10.

 

New to the stock thing.......Do you call Ameritrade or sign up through the internet. Our cruising friends bought in Nov through their bank and paid fees around $50. I think $10 sounds much better!!:)

[catnt2]

Dup post! Sorry!

[booze brothers]

We bought ours on line through Ameritrade. It was really simple and the cost was only $10.

[traveler/]

New to the stock thing.......Do you call Ameritrade or sign up through the internet. Our cruising friends bought in Nov through their bank and paid fees around $50. I think $10 sounds much better!!:)

tdameritrade.com

click on "apply online now"

Trades are $9.99

Check promotions available