Analysts upgrade FUN from "hold" to "buy"

Wish I didn't have to sell when I did, but I needed the cash. I still find it ridiculous that they attempted to sell the company.

I'm glad I held onto mine. I get a few shares every month with Sharebuilder.

That's the power of dinosaurs.

"...they were upgrading amusement-park empire Cedar Fair LP to "buy" from "hold" after meeting with the company's incoming CEO, Matt Ouimet."

It was the lack of a tie that sold them. ;)

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I wonder if Matt said the word "Disney" a lot during their meeting.

Always fun reading analysts reports.

"But the KeyBanc analysts said the poor economy may actually play in the favor of regional amusement parks, because families will trade down to trips there rather than bigger vacations."

So, Cedar Fair has done well recently with a poor economy and all?

"In the past five years, it has turned a profit in nine of 20 quarters. In the past year, it has been profitable in two of the four quarters."

Guess not.

"The analysts said Kinzel had run an efficient operation. They said they expect Ouimet, in turn, will focus more aggressively on growth."

So the Paramount acquisition wasn't about growth?

"The Ohio-based company, whose parks include Kings Dominion in Virginia and Cedar Point in Ohio, increased both its number of visitors and the average amount each one spent inside the park in the second quarter."

Quitmet wasn't even hired until the second quarter was almost over. And he hasn't even taken over yet. But growth has already started. Guy is good. With or without a tie.

The analysts like Ouimet. And there is a lot to like. But they can't give that as a reason for the upgrade so they make stuff up even if it doesn't make sense.

He is going to more aggressively focus on growth? And what new CEO doesn't say that? Could you passively focus on growth?

Easiest ways to find growth will be in regions that are growing.

Is number of quarters profitability really relevant in the amusement industry? I mean, they don't even generate income in the first two quarters of the year.

Depends. Quarterly reports typically show income to date and also 12 months then ending. If they are referring to CF's actual quarterly results, then I agree with you. If they mean the trailing twelve month results as of the end of each of those quarters, then I think the profit numbers are relevant. Not sure which one they are using thoug without looking back at each of the last 20 quarterly reports.

First quarter is always a loss. Always will be. Q4 is the one that historically was a loss, until they started keeping parks open so late in the season.