Six Flags Stock Price

FUN was down to a new low of $11.52 Monday with a company valuation of only $1.181 billion. The market is clearly seeing the writing on the wall, when does the Six Flags board finally take responsibility?

Personally, I’d vote to break the company up into two parts, returning the profitable legacy FUN parks to their own brand. There is nothing in writing to legally prevent such an arrangement, though it would require the board to approve and shareholders to vote and approve. The new company could be based in Sandusky where corporate headquarters were established prior to this debacle. I’m sure Ohio state politicians would be thrilled to offer financial incentives to regain the company headquarters given the state has two of the most profitable parks in the portfolio. Travis and Taylor would become FUN ambassadors and all would be well in the world again. 🥳

$11.52 new 52 week low on an arguably horrible day for the market yesterday.

It’s going to be a bad rest of the year.

Gunkey Monkey:

I’d vote to break the company up into two parts, returning the profitable legacy FUN parks to their own brand

I'm not sure what this would solve. The debt is still going to be there. And the bankers are going to have a large say in whether the company can be divided up, and how the debt can be apportioned. They're certainly not going to say "go ahead and spin off legacy Cedar Fair debt free, and saddle legacy SF with $6 billion in notes."

The best outcome I can see is a debt-equity swap where the lenders take an ownership stake, sell off such parks as they can to existing operators, and spin off a bunch of other parks as a new company with significantly less debt. There's almost certainly some casualties in that scenario, particularly in northern and southern California.

$10.86 today. Why am I hearing Aerosmith “going dowwwnnnn”? Gotta laugh otherwise investors are crying, especially knowing Bassoul walked away with MILLIONS for his failed leadership and merger.