Cedar Fair Downgraded To Long Term Buy

[The Interpreter]

by Hilliard Lyons:

http://www.newratings.com/analyst_news/article_1394603.html

[jzarley]

Not suprising considering the recent results (and guidance) and the new debt load. However, I would expect most investors would have considered FUN a "long term" holding to begin with...you gotta hold it for a while and enjoy those dividends

(Even if they did have to borrow money to pay for those dividends over the next few years... )

[ragerunner]

I still say, with the recession coming in 2007 and probably 2008, Cedar Fair picked a very bad time to take this much debt on. We may still find that they have to unload a couple of parks to keep their stock under control in the next few years.

[The Interpreter]

Actually, I think they need to be far more concerned about the creditors and terms in loan agreements than they do the unitholders.

[jzarley]

I definitely agree with you on that one. The lenders have certainly been SF's headache lately...

However, the last thing CF needs is a revolt by the unit holders...by and large, they've been a pretty happy, quiet group. (Except for some opinions on the most most recent offering.) Imagine the first year they're not able to pay a dividend--I wouldn't want to be Kinzel on that call!