The Depth Report – A Detailed Examination of Royal Caribbean’s Free Cash Flow

Last month, we posted a detailed writeup on Royal Caribbean Cruises Ltd (Ticker: RCL) on SumZero. That writeup was then published in Barron’s under the title:Royal Caribbean Stock Can Gain Nearly 40%: Portfolio Manager. In both cases, readers chimed in with concerns about the free cash flow at the company. One pointed to the increase … Read more

The Depth Report-Carnival Says 40% Off-Is Cruise Pricing Sinking?

On November 1st, 2019, Princess Cruises, which is owned by Carnival Corporation & Plc (ticker: CCL) announced a 55th anniversary sale which included onboard spending money, room upgrades, a wine & dine package, and airfare credits for specific sailings. There’s nothing unusual about this. Like all leisure, gaming, and hotel companies, cruise lines regularly introduce … Read more

Royal Caribbean (RCL) – Long – Writeup

The Depth Report Royal Caribbean Cruises Ltd. (RCL) Overview: Royal Caribbean owns and operates cruise ships under several brands including Royal Caribbean, Celebrity, and Silver Seas. We first started looking at the cruise lines around 2 years ago because we saw the industry was undergoing a transition. Over the last 2 decades, cruise ship capacity … Read more

Bras, Bralettes, Barron’s, and a Big Dividend Problem

Last week, we published a piece on SumZero recommending a short position in L Brands (LB), the company that owns Victoria’s Secret and Bath & Body Works. The key point is that there is a fashion trend away from the complicated underwire bras sold by Victoria’s Secret for $50 – $60, and towards more casual … Read more

Short Case on L Brands – Published March 2017

L Brands (LB) Overview: L Brands (ticker LB) is the owner and operator of Victoria’s Secret and Bath & Body Works. Other businesses account for less than 5% of revenue and no operating profit so will not be addressed here. Victoria’s Secret is now about 60% of the $13B US lingerie industry. Bath & Body … Read more