Royal Caribbean

[xboilermaker]

The boomer portfolio is a laugh. Glad I kept waiting for them to "come in", because they're still "coming in" after three weeks. Wonder how many took advice on Aug8 and bought RCL, XRAY, PDCO, MRK!!!, or one of those other losers. After the about face on RCL last night, after losing 5%, wondering what revelation brings Cramer to that conclusion. All I can find different is that it's now cheaper, and has floated out the Freedom Of The Seas, the largest ship afloat this week. Why all at once is it no good?

[helk]

I still like RCL. I think it could reach 60+ in the next year. Cramer likes to jump on momentum plays to try to make a quick buck and then move onto the next one. He generally expects to hold a stock for about a quarter. So, when a stock begins to fall he bails out and moves on.

Although I like Cramer, I think this causes him to jump on and off the bandwagon too quickly on most stocks. When I buy a stock, I expect to hold it for about 6 months to 2 years. Sometimes shorter, sometimes longer. For instance, I liked RCL 2 years ago at 30, I liked it a year ago at 40, and I still like it now at roughly 44. Granted, I think it's getting closer to a sell, but typical corrections shouldn't be a reason to jump ship - pardon the pun.

I think you need to take Cramer's style into consideration when analyzing his picks. He's been very succesful over the years (I think he averaged around 24% per year gain over his career if I'm not mistaken) so it works for him, but depending on your trading style you should probably take his recommendations with a grain of salt.

His style also makes for good TV. He always has lots of picks and opinions and is constantly updating his position on stocks like RCL. Imagine if I had a show and told you to buy a stock and then call back in a year or so to discuss it again...pretty boring stuff compared to Cramer.

[deepinwonder]

We didn't get to see that show last night, but I did read an article last week that the biggest new ships are having a hard time docking in the smaller resort ports in the Caribbean. Some of the docks are being upgraded, but even with those improvements, the ships are still too large. Maybe that has something to do with it?

Also, a lot of people are complaining about the huge crowds and inordinate amount of time spent waiting in line on those bigger ships, but I don't know how much capacity they are booking.

Since this hurricane season has been so active, that also might affect the bottom line. Even though those bigger ships can handle storms better, who wants to risk going out in a cat four?

[deepinwonder]

I bought MRK when he said not to and made $4 a share on it, but I wouldn't get it, now. They do have an interesting herpes vaccine in the works and I was amazed at the amount of college students who have that. If it works out, there could be a huge demand. Never once heard Cramer bring that up.

[deepinwonder]

I don't know how the stocks perform, but I've been checking around and I don't like the way these cruise lines run their businesses.

[optimus25]

I agree with Helk's analysis on Cramer's picks. I have a holding period of 6 months to a year for short term investments. Trading in and out of the market can get pretty expensive because of commission charges as well as short term capital gains tax on stocks held less than a year.

Personally, I've made good money on stocks taking a deep hit after bad news. I normally watch the stock and try to get in when the price stabalizes. This is where most of my money's been made.

[xboilermaker]

Never had the slightest urge to cruise, or to buy the stock, just curious why the quick change of opinion. I am quite sure that the man was already missing and the blood found when he recommended three weeks earlier, and the vioxx news was out concerning Merck. And wow, look at his ELOS today.

[deepinwonder]

I wouldn't buy Elos or get one of those treatments. Also wouldn't go on a cruise, because they are subject to no laws and cover up crimes, toxic dumping, bad medical care, excrement in food, etc. The blood stained deck on tv every night doesn't really entice me, either, but I wouldn't mind some duty free shopping. 8)

[deepinwonder]

Cramer is not the only one trading stocks like that, it doesn't even seem like the same market I started investing in. Look at Boeing's stock for the past couple of months. Huge swings up and down, up and down, up and down, for no good reason.

[deepinwonder]

Wait a minute, Cramer dissed Vegas stocks last night, which are doing great, then recommended Penn Gaming, who owns casinos in Mississippi! Maybe he hasn't seen the news. Yeah, right.