With hurricane Irma bearing down, he would be careful about getting in this. As a general proposition, he likes this for the long haul. The cruise/leisure industry makes a whole lot of sense going forward. You can never go wrong generally, by going with the largest player in the group. However, you do want to pick your spots.
It was a bargain for a while because a number of the companies in the sector had struggled and had accidents. This is viewed as the leader in the industry. Fuel costs being low are an added benefit. You could have bought it cheaper a year ago, but there is plenty of upside going forward.
It was a bargain for a while because a number of the companies in the sector had struggled and had accidents. This is viewed as the leader in the industry. Fuel costs being low are an added benefit. You could have bought it cheaper a year ago, but there is plenty of upside going forward.
Carnival Cruise (CCL-N) or Royal Caribbean Cruise (RCL-N)? As a thematic investor, one of the key themes he is interested in is travel and leisure. Both these companies play into that theme, as does Disney (DIS-N). Both are well run companies and global. He would buy either one. Both should grow earnings in the mid-teens, and you could do well in either one.
Carnival Cruise (CCL-N) or Royal Caribbean Cruise (RCL-N)? As a thematic investor, one of the key themes he is interested in is travel and leisure. Both these companies play into that theme, as does Disney (DIS-N). Both are well run companies and global. He would buy either one. Both should grow earnings in the mid-teens, and you could do well in either one.
Cruise ships have a tendency to do very well in the latter part of the year and into the spring. Chart shows a long-term upward trend from 2014 and it just recently broke to new highs. This is outperforming the market, and we are still in a period of seasonal strength. When owning a stock, you want technicals showing an upward trend and positive strength relative to the S&P 500, with positive seasonality as the extra positive. If you own, continue holding until April.
Cruise ships have a tendency to do very well in the latter part of the year and into the spring. Chart shows a long-term upward trend from 2014 and it just recently broke to new highs. This is outperforming the market, and we are still in a period of seasonal strength. When owning a stock, you want technicals showing an upward trend and positive strength relative to the S&P 500, with positive seasonality as the extra positive. If you own, continue holding until April.
(Top Pick Jul 7/16, Up 8.05%) Cruise companies have a big expense in oil. She thought it was a great buying opportunity with there being fewer travelers across Europe. You can still buy in at this level. She likes the outlook. China is important to this company. There is a huge consumption base that has not been tapped.
(Top Pick Jul 7/16, Up 8.05%) Cruise companies have a big expense in oil. She thought it was a great buying opportunity with there being fewer travelers across Europe. You can still buy in at this level. She likes the outlook. China is important to this company. There is a huge consumption base that has not been tapped.
Cruise line operators benefitted from the fall in energy and then along comes the Zika virus, but he thinks that will be solved in some way. Cruise operators have been confronted with things like this before.
Cruise line operators benefitted from the fall in energy and then along comes the Zika virus, but he thinks that will be solved in some way. Cruise operators have been confronted with things like this before.
(Market Call Minute.) Valuations are high. There has recently been a little slowdown in the industry because of some of the International issues on travel. This would be a Hold at best.
(Market Call Minute.) Valuations are high. There has recently been a little slowdown in the industry because of some of the International issues on travel. This would be a Hold at best.
Has had quite a lot of volatility. Als,o has a lot of exposure every time there is a sense of a terrorist attack, particularly in Europe or the Mediterranean. That can really push the stock down. Right now she is not a fan of this. Although they have been having very good growth, there are a lot of headline risks. There has been a big drop in some of the travel industry, particularly in Europe where a lot of their revenues come from.
Has had quite a lot of volatility. Als,o has a lot of exposure every time there is a sense of a terrorist attack, particularly in Europe or the Mediterranean. That can really push the stock down. Right now she is not a fan of this. Although they have been having very good growth, there are a lot of headline risks. There has been a big drop in some of the travel industry, particularly in Europe where a lot of their revenues come from.
Clearly benefiting from weaker oil prices. A global company, so would have exposure to consumer demand on a global basis. The strong US consumer helps them. Feels the outlook is relatively strong for the whole industry.
Clearly benefiting from weaker oil prices. A global company, so would have exposure to consumer demand on a global basis. The strong US consumer helps them. Feels the outlook is relatively strong for the whole industry.
Cruising is an underappreciated segment. It is attracting a lot of people, not just the older demographic. Fewer ships are being built and demand is increasing. Cash flow is improving and debt is decreasing. Asia, China, and Cuba are popular destinations. There is a 38% growth rate on the dividend. A lot of the cash flow is currently going to pay down debt.
Cruising is an underappreciated segment. It is attracting a lot of people, not just the older demographic. Fewer ships are being built and demand is increasing. Cash flow is improving and debt is decreasing. Asia, China, and Cuba are popular destinations. There is a 38% growth rate on the dividend. A lot of the cash flow is currently going to pay down debt.
Royal Caribbean Cruises (RCL-N) or Carnival Corp (CCL-N)? Royal Caribbean has outperformed Carnival in the last 12 months. It is up about 50%, where this one is up about 30%. On a valuation perspective, this trades at over 1.1 PEG ratio compared to Royal Caribbean at .85. It is also cheaper. Both should do well.
Royal Caribbean Cruises (RCL-N) or Carnival Corp (CCL-N)? Royal Caribbean has outperformed Carnival in the last 12 months. It is up about 50%, where this one is up about 30%. On a valuation perspective, this trades at over 1.1 PEG ratio compared to Royal Caribbean at .85. It is also cheaper. Both should do well.
Has had a lot of problems. Theoretically the cruise ship business is a great way to take a fairly inexpensive holiday. There is probably some pretty good protection from an asset point of view. The trouble is, the brand has taken a huge, huge beating. This is a high risk trade. He looked at it and decided against it.
Has had a lot of problems. Theoretically the cruise ship business is a great way to take a fairly inexpensive holiday. There is probably some pretty good protection from an asset point of view. The trouble is, the brand has taken a huge, huge beating. This is a high risk trade. He looked at it and decided against it.
This is something that he is looking at. Because of high fixed costs, cruise ships are extremely cyclical and totally tied to the global economy. Economic bad news is horrible for these companies, but it is a stock that intrigues him.
This is something that he is looking at. Because of high fixed costs, cruise ships are extremely cyclical and totally tied to the global economy. Economic bad news is horrible for these companies, but it is a stock that intrigues him.
Have had lots of difficulties with the cruise line that got in accidents but have recovered brilliantly from that. Revenues have recovered. Bottom line took a big hit but it is doing reasonably well now. Insiders have been selling quite a bit. Do about $15 billion of revenues but debt load is about $9 billion. That is a pretty heavy debt load and he doesn’t like that.
Have had lots of difficulties with the cruise line that got in accidents but have recovered brilliantly from that. Revenues have recovered. Bottom line took a big hit but it is doing reasonably well now. Insiders have been selling quite a bit. Do about $15 billion of revenues but debt load is about $9 billion. That is a pretty heavy debt load and he doesn’t like that.
With hurricane Irma bearing down, he would be careful about getting in this. As a general proposition, he likes this for the long haul. The cruise/leisure industry makes a whole lot of sense going forward. You can never go wrong generally, by going with the largest player in the group. However, you do want to pick your spots.