The Interpreter Posted June 27, 2008 Share Posted June 27, 2008 http://www.thestockmasters.com/SIX-FLAGS-062708.html Quote Link to comment Share on other sites More sharing options...
jzarley Posted June 27, 2008 Share Posted June 27, 2008 Wow...pretty harsh, but probably accurate. With SIX's stock price so low, the market cap for the entire company is only slightly higher than the $145M CF paid for Geauga Lake a few years back! (Of course, CF's market cap is also now considerably less than what they paid for Paramount Parks in 2006 as well...) EDIT: Actually, it had been several days since I looked at the stock price--the entire SF company is now worth less ($131M) than what CF paid for just GL! Quote Link to comment Share on other sites More sharing options...
Cory Butcher Posted June 27, 2008 Share Posted June 27, 2008 Technically though, the stock price of a stock is just a value judgement by consumers on an idea of possibly making money. Really that is what it boils down to, and nothing more. The only time a company actually sees a nickel of that stock price change is during the IPO (Initial Public Offering) where the company makes the money the shares are worth with the sell of those shares to investors. Other than that, shares in stock are nothing more than a stake in decisions in a company a person may like, or a chance to earn income if there is a dividend. The real way to know whether a company is going under or not is to look at the Statement of free cash flows. The stock price says much about corporate confidence and much less about internal governance. Edit: I love the way he wrote that article, and his conclusion, brilliant. I must say I rather enjoyed SFOG! Quote Link to comment Share on other sites More sharing options...
Coasterkidman Posted June 28, 2008 Share Posted June 28, 2008 Wow. I grew up learning about amusement parks, and being taught that Six Flags was the King, the destination for all thrill seakers. Now here i am, starting to Really go seriouly in delpth about them, and It may be Six Flag's last few seasons? I don't know about you older folk who have had some experience here, but to me that's kinda big! Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 28, 2008 Author Share Posted June 28, 2008 It may be current management's last season or close to it. The company has been through many owners, as has Kings Island. If the company management is thrown out tomorrow, the company will almost certainly survive, just under different tutelage. Quote Link to comment Share on other sites More sharing options...
jzarley Posted June 28, 2008 Share Posted June 28, 2008 Technically though, the stock price of a stock is just a value judgement by consumers on an idea of possibly making money. Really that is what it boils down to, and nothing more. The only time a company actually sees a nickel of that stock price change is during the IPO (Initial Public Offering) where the company makes the money the shares are worth with the sell of those shares to investors. Other than that, shares in stock are nothing more than a stake in decisions in a company a person may like, or a chance to earn income if there is a dividend. The real way to know whether a company is going under or not is to look at the Statement of free cash flows. The stock price says much about corporate confidence and much less about internal governance. Edit: I love the way he wrote that article, and his conclusion, brilliant. I must say I rather enjoyed SFOG! And, how does the cash flow and balance sheet look for SF, Cory? Pretty much in the same boat as their stock price... Stock performance means a little more than just a superficial judgement of how people "feel" about a company. That's why whenever there's a proposed acquisition the purchase price is always put in relation to the current value of the stock (i.e., with the InBev/Busch proposed deal)...it's a good measure of how the market values the business. Also, frequently in the case of public companies the debt rating is based at least in part on the company's market capitalization. And, finally, most public companies "buy back" their stock at regular intervals...not only to make money (hopefully) when they sell it again later, but also to show the market that management has a strong belief in the future of the company. (SF had such a big buy back a few years back...after the current management crew took over.) So, a public company's success is always tied to their stock price...even if it doesn't mean direct cash in the pocket. That being said, there's no way that I think the entire SF company is only worth $135M...selling off the assets in bits and pieces should pull in a lot more than that. However, it is a very clear statement on how the market feels about SF's future success...and unfortunately, that's not looking too rosy right now. BTW...I sold off my SIX stock (when the ticker symbol was still PKS) at around $10...of course, I unfortunately paid around $18 for it Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 28, 2008 Author Share Posted June 28, 2008 ...so that wasn't a premier parks investment, eh? Quote Link to comment Share on other sites More sharing options...
jzarley Posted June 28, 2008 Share Posted June 28, 2008 ^ Actually, I think it was Premier at the time...Summer of 2000 with 100 shares. (I really thought Burke & Story knew what they were doing ) Sold it in the Winter of 2006...after waiting for it to come up to at least $10. (But, I think the ticker was still PKS at that point...I don't recall now.) Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 28, 2008 Author Share Posted June 28, 2008 SIX arrived with Mr. Snyder...yes... Terpy, who was tryin' to be punny with the younguns....who'd not have gotten it anyway...a funtime anyone? Quote Link to comment Share on other sites More sharing options...
jzarley Posted June 28, 2008 Share Posted June 28, 2008 SIX arrived with Mr. Snyder...yes... Terpy, who was tryin' to be punny with the younguns....who'd not have gotten it anyway...a funtime anyone? Sorry...I was thinking too literally Funtime would have been a good stock to have (if it would have been public)...Burke & Story knew how to run four parks Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 28, 2008 Author Share Posted June 28, 2008 Just like CCI knew how to build a sky princess..... Quote Link to comment Share on other sites More sharing options...
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