I was holding RCL long-term during the pandemic and sold off after their last earnings report (at several points higher). Regretting that now as it keeps going up up and up.
Bought CCL for cheap before earnings and it’s looking good.
Oil is down, record bookings. Really the only negative is the debt the industry acquired and high interest rates. But they’re paying down the debt, profitable again, interest rates will go down.
The whole industry is poised well.
Any concern with debts accrued during COVID? Both essentially debt financed 3 years of operations and are now holding ~$30B coming due with limited cash available. Feels like that should have a depressing effect on stock price, and yet RCL is trading at pre pandemic highs.
It absolutely did and I was holding a bag well below my cost for a year and not getting dividends but the big three kept beating earnings reports and have been showing significant progress in paying down the debt. For the last couple quarters, when one reports, the other two go up as well.
Interest rates are expected to drop soon which should help, although with the case of RCL, I believe the market has already priced that in.
Everyone should do their own diligence and research obviously, but I feel across Royal Caribbean, Carnival, and Norwegian, there’s still plenty of room to grow.