So who is up to make some money? Investing in cruise line stocks


Farm Hand
Serious question...who out there is ready to sink some mad money into the cruise line industry?

Looking at them today and retail investors are KIILLING the stock prices!

Royal Carribean at roughly $64 this morning 52 week high is $135

Carnival is 27 bucks - 52 week high of 58

Norweigan is 27 bucks and a 52 week high of 59

Even Disney down to 110 off 52 week high of 152

Stop and think about this for a minute...Yes, the waters are choppy here (pun intended),yes it is risky...but cruise lines have a loyal following...just like consumers of brands like Apple, Harley Davidson, John Deere...ect.

Its not as if these companies are going to fall away soon, and as we end the Asian season and more ships come back to the US for Spring/Summer, this is bound to be less of a media topic.

Look at tiny Lindblad (Nat Geo cruises) too - 10 bucks - 52 week high of 19...and their primary markets served. Corona is likely not near the factor it is for the like the mega ships of the big 4...their product is ultra pricey and their clientele is the upper middle class/high end consumer who tends to be less paniced by the evening news.

To maje things even MORE tempting...lets say for the sake or argument, things stay flat or "gasp" decline slightly...well - your getting a 4.5% dividend on RCL and over 7% on CCL !!! So a "flat" stock price still gets you at least 4 times what any money market gives you and 2x the market div as a whole.

Is it risky, absolutely - would I mortgage the farm on these names...nope. But - taking half that tax refund this year or cutting back on vacation and buying a little of these stocks COULD yield a 20-30% return next year easily.

Oh yea...if you have a cruise booked and are not aware (or are thinking about tsking a cruise still)...look into "shareholder benefits" - owner of these stocks get an extra $50-200 dollars on their cruise to spend.

There are literally a hundred ways to play this, including reducing the risk by writing covered calls/puts and using options to lock in some profits at times...but thats truely advanced level stuff that you cannot master reading a forum in 15 minutes.

If the response is positive to this thread, I might post some other thoughts next week on another beaten down sector that many farmers in Ohio/Pa and Wva have become familiar with the last 10 years - oil and gas.

As always consult with your investment advisor, any investment comes with risk and may not be suutable for everyone. Always wear protection and lets stay safe out there today.