RailRider Posted January 26, 2009 Share Posted January 26, 2009 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. Quote Link to comment Share on other sites More sharing options...
74Gibson Posted January 26, 2009 Share Posted January 26, 2009 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! Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted January 26, 2009 Share Posted January 26, 2009 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? Quote Link to comment Share on other sites More sharing options...
Zorba Posted January 26, 2009 Share Posted January 26, 2009 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. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 26, 2009 Share Posted January 26, 2009 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... Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted January 27, 2009 Share Posted January 27, 2009 Jim Cramer Mad Money on FUN Quote Link to comment Share on other sites More sharing options...
Cory Butcher Posted January 27, 2009 Share Posted January 27, 2009 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. Quote Link to comment Share on other sites More sharing options...
cholderfield Posted January 27, 2009 Share Posted January 27, 2009 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. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 28, 2009 Share Posted January 28, 2009 Motley Fool: Yield Cuts Are FUN: http://www.fool.com/investing/dividends-in...ts-are-fun.aspx Quote Link to comment Share on other sites More sharing options...
RailRider Posted January 29, 2009 Author Share Posted January 29, 2009 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. Quote Link to comment Share on other sites More sharing options...
Cory Butcher Posted January 29, 2009 Share Posted January 29, 2009 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! Quote Link to comment Share on other sites More sharing options...
RailRider Posted January 29, 2009 Author Share Posted January 29, 2009 Dont have a Series 6 for nothing. Quote Link to comment Share on other sites More sharing options...
XGatorHead 8904 Posted January 29, 2009 Share Posted January 29, 2009 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)... Quote Link to comment Share on other sites More sharing options...
RailRider Posted January 30, 2009 Author Share Posted January 30, 2009 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. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.