The real opportunities in this market are industries like car manufacturers who are going to see massive bumps in sales after the pandemic is under control. People who waited to buy cars through this are all going to be buying cars. I don't think the travel industry will recover as well however, there won't be massive pent-up demand for travel.
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- Thread starter SoapyCy
- Start date
Oh i dont know about that. There will be some hesitation but those who love to travel and those who need to for work will be champing at the bit. We cut our vacation short because of all of this (not complaining, just stating), and are anxious to finish that out when it subsides. We can't be alone. There will still be some restrictions I'm sure and some heightened awareness (which I'm pumped about, hate when people are gross) but overall, travel will pick up again. There will be pent up demand for a lot of things moving forward. How far out is it yet? That remains to be seen, but man....when those restrictions fall off......oof.
How many of us are sitting on airline credits that have to be used this year. We cancelled out of spring break (NY) and it’s use it or lose it by year end.
Also, I think you keep someone cooped up long enough they will go as soon as they feel they safely can. Probably a lot of August timeframe trips. Pending the length of this.
I would love for the airlines to extend it to 2 years at least for this instance. I hate credits that expire that quickly. We have two cancelled trips, one work, one pleasure and now we are sitting with credits. A year is still a long time, but dang...
If the unemployment rate shoots to levels that are being bandied about then car sales aren’t going anywhere.
Cruiselines will for sure. They already have gotten hammered publicly for norovirus, people falling overboard, and now this. Itll be a slower climb for them for sure, but they absolutely will recover. Lots of folks out there love those cruises. I wasnt a fan, but I do see the allure somewhat.
This is a real concern. People will be hoarding cash for a bit and when they do spend, it'll be on smaller more manageable purchases.
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I would love if the dividends stayed the same for a year!! With the less than half price on many stocks I would have a 10-15 payment on what I’ve picked up.
I'm trying to find the article now but there is a projected bottom for Royal Caribbean to hit between $8 and $15 a share. The guy said the buy price is anything under $15 so I'm holding out right now before I buy any. My wife and I are cruisers as of the last couple years and 100 shares will get you a bunch of on-board credits. Three months ago that was out of reach for us but now I could pull the trigger on anytime I want, I'm just trying to be patient because I don't think it's hit rock bottom yet.
This makes me remember back to the last stock market hit. A broker friend of mine had people who had never been through a bad down turn before pull out their funds when they had lost close to half of their value. Their concern was that it would become zero. So when things seemed like they should bottom out, there was still some panic selling that drove it down some more.
Using airline credits doesn't equal additional cash flow for the airlines. They already have the cash.
Not cash flow but they have to post it as a credit until it's used so it does not count as profit. So you will see a drain on cash but a profit for the airline.
The question will also be, what will they be charging? Airline travel had dropped down fairly cheap as of late. Last time this happened, they had to up their rates to clean things back up, so I guess that my credits will be worth 20-25 cents on the dollar when it comes time to use them.
Good point. Another thing that hurts the airlines, if they get a bailout that limits stock buybacks, they're going to have to increase share value on their own merits. It will be a long, slow build back up in share price.
NVDA fighting valiantly to defend the 200-day moving avg at ~$200. After Fri and Today, it's holding on.
@bos
Here's the article I read the other day on RCL stock.
https://seekingalpha.com/article/4333322-dont-buy-royal-caribbean-cruises-just-yet
Here's the article I read the other day on RCL stock.
https://seekingalpha.com/article/4333322-dont-buy-royal-caribbean-cruises-just-yet
As long as they don't go t's up, I'll to wait for the return. I'm willing a to put a little "fun" money in there to see what happens.
This is not even close to the bottom.
NVDA is powering all of the AI work we are doing, they will be just fine when this is all over.
