Royal Caribbean Cruises (RCL)

(Market Call Minute.) This is hanging in really well. They just put up some strong numbers. Yield and revenues have been quite good. Chart seems reasonably supportive from this point on.

This has been a well-managed company for some time. What you are buying into is a very high beta of 1.45, meaning it is 45% riskier than the market. He would avoid the stock because there is too much volatility. Also, one of their major inputs is fuel, and feels the price of oil is not done going up. There will be a better chance to get this in the near future.

(A Top Pick Feb 27/15. Down 3.1%.) Took some profits at around $100 and moved his stop loss to $74 and got stopped out. Still likes the name. They have an oligopoly with Carnival and have committed to not building a lot of ships, so the supply is quite low. Demographics are still moving towards that type of occasion. Have a lot of growth opportunity in China.

They had a negative transit this week. They reported earnings. It is a sell signal for him.

Fundamentally sound and getting better in a sector that is getting better. The consumer sector is his favourite sector. Leisure and travel is one of the first places people spend money in an improving economy. As fuel prices come down fuel costs are mitigated. Lots of free cash flow, 10% return on the capital. Seasonally a great time for the industry. The consumer travel economy in China is improving.

Royal Caribbean Cruises (RCL-N) or Carnival Corp (CCL-N)? This one has outperformed Carnival in the last 12 months. It is up about 50%, where Carnival is up about 30%. On a valuation perspective, this trades at .85 PEG ratio while Carnival is over 1.1. Also, this one is cheaper. Both should do well.

Second largest cruise ship company. Well positioned to benefit from the recovering global economy, lower fuel costs and positive long-term demographic trends. There are some modest industry capacity increases that are happening as not a lot of ships are being built. They are also making headway into Asia by trying to take advantage of the growth there. Trading pretty decently at 16X forward earnings and a 20% growth rate. Attractively valued. Dividend yield of 1.57%.

Entertainment stock, seasonally doing well from December through early winter. A nice move and it is still in an upward trend, above the 20 day moving average and outperforming the market.