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FUN Downgraded By Argus, Units at $9.01...


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I have noticed on just about every stock I follow closely that the ratings are backwards of what makes good invest sense. When the stock is doing well and has a high price they say to buy and when the stock has taken a beating they always say sell.

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Nuclear Winter, no we dont need to be that drastic, but optimistic on Fun. Absolutely. I still have confidence in the company and what they are capable of. Did I ever expect it to turn around overnight? Absolutely not. I am optimistic long term, would also be why I own Disney and Great Wolf. Short term not high hopes, but as the economy changes so will these companies stock.
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Yes great time to sell your Fun stock, especially if you bought it a few years ago. The mouse is taking a beating too, but I still believe the amusement industry is strong and especially in these times.

Are you still optimistic on FUN? I remember something about it taking nuclear winter to change your mind.

Even if they cut their dividend in half, it by itself would still provide a very good return. So as long as you believe the company will make it long term, I think the stock would be a fairly good investment.

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The thing is when thinking about what to invest in at this time, I would be looking for what will give me the biggest amount of return when the economy picks back up. I think most of the amusement park companies will fair out but I think the big returns will be in other industries. So maybe the FUN and DIS stocks are good safe bets over the long term but many will put the money in more income potential stocks.

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If the dividend doesn't get cut that is a nearly 20% yield, I seriously doubt you kind find many other stocks that would provide a 20% return year after year. If it did get cut in half a 10% yield is still better than the long term average return on the S&P, not to mention when the economy turns around FUN will likely go up with everyone else. If the dividend is cut completely, it would be a pretty poor investment, IMHO, which is why I am waiting for that shoe to drop.

IT would also be nice to let the FUN dividend pay for my season passes, food and travel expenses for their parks :).

I do agree right now you should be investing in what you think will do well when the market goes back up, I just don't necessarily think FUN is a bad choice, since it has been hammered lately and has a massive dividend.

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Closed today at $6.14, down more than twelve percent, on nearly two and a half times the normal average volume. Down more than thirty percent since February 19 alone. And still no word on the refinancing that was scheduled to be announced the day before the February 12 conference call, then the end of that week or early the next week.

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I am affraid that even if the refinancing is secured the stock will not rebound immediately. Unfortunately lenders are not moving quickly in this market. They are being over cautious and looking for any reasson not to approve a refi. Personal or business, it doesn't matter. The banks are actually hurting themselves because they have gone from one extreme to the exact opposite, very knee jerk reaction.

Still I would be shocked if CF doesn't acquire the financing they are looking for and I also look for them and most amusement parks to have a strong year. Staycations.

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