Royal Caribbean is also suffering from the spill-over effect from the negative publicity caused by C

Yesterday, I wrote a short article about Royal Caribbean President Adam Goldstein selling 2,181 shares of RCL cruise stock earlier this week at an average price of $36.80, for a total value of $80,260.80. accommodation holidays mallorca Cruise executives buying and selling their company's own stock is interesting to me as an indicator into their true thoughts about the direction of their business' future.
That being said, an cruise executive's sale of only $80,000 worth of stock doesn't say much. $80,000 may pay the annual wages of a dozen RCL utility cleaners but it's pocket change for a cruise line president. Goldstein still owns 335,654 shares of the company s stock worth over $12,350,000.
As we mentioned this week, research firms are split on RCL's stock. One analyst gave the stock a sell rating, nine analysts assigned a hold rating and ten issued a buy rating. RCL currently has a consensus rating of hold and a consensus target accommodation holidays mallorca price of $40.21.
Travel Weekly quoted Fain at the cruise line's second-quarter earning call last week. He said that despite the unrelenting pressure of a deluge of negative publicity on the cruise industry, things are looking up. Mr. Fain said the company is overcoming what he called the CNN effect of negative media scrutiny on things like highly publicized cruise ship fires that have occurred this year.
Royal Caribbean suffered a serious fire to its Grandeur of the Seas. And just last month, accommodation holidays mallorca it's subsidiary brand Pullmantur's Zenith suffered an engine room fire which disabled the ship which needed to be pulled by tugs to back to shore.
Royal Caribbean is also suffering from the spill-over effect from the negative publicity caused by Carnival's Costa Concordia disaster and the Triumph's infamous poop cruise, accommodation holidays mallorca in addition to other Carnival cruise ship mishaps.
I am not too sure that I would bank on a more positive public perception of the cruise industry developing naturally. The CNN effect is real. In my opinion, accommodation holidays mallorca the images broadcast by CNN are a lot more persuasive and powerful accommodation holidays mallorca than the positive musings of a hopeful cruise executive.
Plus there's a couple of things to keep in mind. There are increasing cut backs in RCL officer and staff salaries and crew pay coupled with an increase in their responsibilities which are deteriorating morale on the ships. Some of the tips which formerly went to the RCL cabin attendants and waiters are being channeled away from the crew to the company's income stream and destroying the crew's attitude in the process. And the MLC will come onto effect next month, restricting crew member working excessive hours, which may increase RCL's costs, restrict the cruise line's accommodation holidays mallorca historical exploitation of its crew, and push its profit margins down.
RCL's cost cutting measures helped it to squeeze out a profit this past quarter, but it was under $25 million on gross revenues of $1.88 billion. How much more can RCL cut from the already overworked and underpaid crew?
And no cruise executive pumping up a stock price would dare mention Senator Rockefeller's announcement last week that he intends to introduce legislation to take away the loopholes in the U.S. tax code which permits the cruise lines to avoid U.S. taxes on its foreign flagged cruise ships.
July 31 2013 Update : Watch List News reports that Royal Caribbean Cruises' President Adam Goldstein dumped 16,717 shares of the stock on the open market in a transaction that occurred on Tuesday, July 30th. The stock was sold at an average price of $37.20, for a total value of $621,872.40.
Just another example of how the top echelon at Royal Caribbean is so far removed from the lowly worker bees. They cut raises for 2012 shore side and gave very meager raises in 2013 (some around 1%). They continually cut benefits for shore side and ship board employees. They change contracts of employees AFTER they are hired and yet these guys at the top do not feel anything of asking their employees to work 9 months on a ship away from their families and then give them just 6-8 weeks of vacation. I'd love to see these guys work a weekend let alone months accommodation holidays mallorca at a time. Make contracts longer, skimp on maintenance, buy inferior accommodation holidays mallorca maintenance parts, cut overtime, reduce monthly wages, cram more employees into single cabins, make employees pay more of their benefit package, etc. Anything to pad the pockets of the top guys shore side.
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