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Dueling Fools: Cedar Fair Bear


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I think having that guy on the CB podcast was way too early. They really put CF in an awkward position.

Perhaps, but all he really did was restate the rumor that had been printed in the Post. (And, let's face it...it's not like CB's podcast is where most of the investment community is looking to for advice ;) ) I think CF's poor PR response to the initial story (which, I suspect, had more than a passing grain of truth) did more to make their situation awkward more than anything else...

Browntggrr-that's hilarious. When I first read the article I thought "he should have used Magnum in that metaphor" :)

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It is good to also remember that the author had been a huge backer of Cedar Fair and its management for many, many years and had strongly and consistently recommended the units. This article is not good news for the company. It appears to this reader that the author of the piece has been slowly changing his outlook of the company for about the past year. . .

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Well, even the most ardent fan of CF should be able to see the writing on the wall in this case...

A quick look at the balance sheet and recent financial performance tells you that this is a company that's in a lot worse shape today then they were two or three years ago. Acquisitions like the Paramount Parks deal are supposed to increase value through synergies, yet Cedar Fair is less profitable today than they were before acquiring PP (and not just in margins, but in real dollars).

I still hope that these are still just the growing pains of such a large acquisition, but the current FUN financials should give anyone pause...

Of course, to be fair, other than Disney, all of the North American park companies seem to be challenged right now. It's a tough business from the start, and current conditions dont' seem too favorable.

I still say CF should have bought GWL instead of Paramount Parks ;)

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Well, even the most ardent fan of CF should be able to see the writing on the wall in this case...

A quick look at the balance sheet and recent financial performance tells you that this is a company that's in a lot worse shape today then they were two or three years ago. Acquisitions like the Paramount Parks deal are supposed to increase value through synergies, yet Cedar Fair is less profitable today than they were before acquiring PP (and not just in margins, but in real dollars).

I still hope that these are still just the growing pains of such a large acquisition, but the current FUN financials should give anyone pause...

Of course, to be fair, other than Disney, all of the North American park companies seem to be challenged right now. It's a tough business from the start, and current conditions dont' seem too favorable.

I still say CF should have bought GWL instead of Paramount Parks ;)

I know we discussed this about a week ago, but with the credit issue growing worse in the world financial markets CF is going to have a tough time finding anyone to help them financially. CF needed the economy to run like a well oiled machine to make this acquisition work out and that appears, at the moment, not to be happening.

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