Dow Jones Newswire

Shares were down $1.19, or 10%, to $10.72 on volume of 250,458 compared with average daily volume of 176,300. shares reached a 17-year low of $10.63 earlier Monday. Shares fell 10.5% Friday

Analysts and investors took the company's announcement to mean it would be cutting its 16% yield payments, a key reason some are invested in the stock, said analysts.

Hilliard Lyons analyst Jeffrey Thomison cut his investment rating on Cedar Fair shares to a long-term buy from a buy rating on Monday, saying the stock will need about two years to accumulate value if the dividend is cut, which he now expects to happen.

"In our view, this should allow the company ample time to improve its capital structure and increase free cash flow, while continuing to expand current operations," Thomison said in a note to clients. "On a macro level, we feel the overall economy and consumer spending should improve over this period, leading to potential higher equity valuations

Should be interesting to see what happens, although makes sense to cut the dividend to free up cash to pay down on outstanding debt. Also I would be surprised if we didnt see major buying by CF executives at these prices, like we saw last week with the major bank CEO's. Even more impressive was that CF made the investment they did in KI this year.

I really think attendance will be up because parks are relatively cheap entertainment and require only short travels for many. The large discounts we've been seeing will also play into that. My concern is the drop in per capita spending. CF may be able to get many to their parks but what good is that if they don't increase revenues!

Should be interesting to see what happens, although makes sense to cut the dividend to free up cash to pay down on outstanding debt. Also I would be surprised if we didnt see major buying by CF executives at these prices, like we saw last week with the major bank CEO's. Even more impressive was that CF made the investment they did in KI this year.

Are you still as optimistic on FUN as you was before?

I've been thinking about investing in FUN, but kept holding off because I figured the dividend would be cut. If it isn't cut by a whole lot I think it is still a good buy.

Closed today at a 52 week low, $10.51, market cap now down to $578.7 million, less than half the purchase price of the Paramount Parks alone...

Jim Cramer Mad Money on FUN

Jim Cramer Mad Money on FUN

Ladies and Gentlemen, do not trust an individual that repeatedly makes claims of fact when they obviously know nothing of the situation or they would get it right, or at least provided some proof.

Cramer, "They cut the dividend [...]"

I'm sorry, but as has been stated here, NO, they have not. They are CONSIDERING it.

If I told you that Magic Kingdom at the Disney World complex is the largest Theme Park in the country, and that Splash Mountain is a roller coaster, would you REALLY believe me when I tell you that Splash Mountain is receiving a name change?

Understand that Cramer's mutual and hedge funds of which he has managed in the past never took off. (He would still be a private portfolio manager). He is on TV because his personality is infectious, not necessarily because he is the most knowledgeable in his profession.

I do not want to discredit him too much, but take what he says with a grain of salt, especially when he gets his information wrong!

And really, I think most everyone here knew that the stock price was tied to their dividend, especially with how leveraged they are compared to the market cap.

I do not want to discredit him too much, but take what he says with a grain of salt, especially when he gets his information wrong!

...Which is more often than not.

Motley Fool: Yield Cuts Are FUN:

http://www.fool.com/investing/dividends-in...ts-are-fun.aspx

Should be interesting to see what happens, although makes sense to cut the dividend to free up cash to pay down on outstanding debt. Also I would be surprised if we didnt see major buying by CF executives at these prices, like we saw last week with the major bank CEO's. Even more impressive was that CF made the investment they did in KI this year.

Are you still as optimistic on FUN as you was before?

Absolutely... With the shares of Cedar Fair I purchased in 2008 I planned on holding them for 2 years roughly. That was my estimate for Cedar Fair shares to basically double at the price I purchased it at. Like has been stated by numerous sources this possible dividend cut should have been seen or atleast expected to be happening soon.

Absolutely... With the shares of Cedar Fair I purchased in 2008 I planned on holding them for 2 years roughly. That was my estimate for Cedar Fair shares to basically double at the price I purchased it at. Like has been stated by numerous sources this possible dividend cut should have been seen or atleast expected to be happening soon.

Wow, That is exactly what I would have said!

Dont have a Series 6 for nothing.

Argh! You're bringing back nightmares!

Gator, now trying to re-erase the memory of spending many a nice summer day last year studying for his Series 6 (but then passing the test with no real problems)...

Yeah I thought the test was much easier than what it was made out to be. Easier than the insurance test, which I no longer use that. Ohwell.