FUN Downgraded

[The Interpreter]

http://m.aol.com/dailyfinance/default/articleStory.do?category=main&url=http://www.dailyfinance.com/2012/07/20/thursdays-top-upgrades-and-downgrades/&icid=dsk_df_news

To the contrary:

http://www.smallcapnetwork.com/Cedar-Fair-at-Seven-Year-High-is-the-Ride-Over-FUN-SIX-CUK/s/via/3420/article/view/p/mid/1/id/1136/

[IndyGuy4KI]

Very interesting! Thanks for sharing Terp. What do you think will happen?

[The Interpreter]

It's very hard to say. In the very short term, both FUN and SIX are probably overvalued, with SIX more so than FUN. I see SIX as having more long term upside, but with substantially more risk. Both companies are far better off than they were three years ago.

The author is not a licensed financial advisor in Georgia, Ohio, or any United State. The opinions expressed are his own. Consult a licensed finacial advisor if you have, or think you may have, a need for such services.

[TheLip2]

I own FUN and have done very well. That said, I personally believe that FUN will struggle with $33 and I see $35 as a very tough barrier. If I wasn't playing it based so much on the dividend performance I would sell. Also, the fact that your dividends (which technically aren't dividends) usually aren't going to be subjected to the normal tax rate due to FUN being structured as a limited partnership are another plus. (Except at tax time when you try to deceipher a K-2 - which isn't very FUN, but is FUN at the same time.)

I am also not a financial advisor of any sort except at my job where my best advice is mostly ignored anyway.