FUN among Stocks To Avoid Now?

Stocks to Avoid Now? The Motley Fool:

..."I worked on the business side of the amusement industry for a few years and one thing I learned is that debt is a killer. No one can dispute that Cedar Point is the finest coaster park in the world, but this stock is a no go," wrote CAPS investor aquabat63. Fair point. Capital IQ reports that Cedar Fair's debt stands at an astounding six times equity. Rare is the firm that can sustain that sort of ratio and still yield 25% in dividends, as Cedar Fair does.

The math simply doesn't favor it. With $6.4 million in capital outlays, $17.5 million in required debt payments, and $105.1 million in dividends, Cedar Fair will have to work hard to keep its free cash flow of $138.5 million up in order not to become a cash burner without a dividend cut. I'm not so sure its cash flows are sustainable, especially in this economy. Not good....

http://www.fool.com/investing/small-cap/20...-avoid-now.aspx