Business Week analyst down on Cedar Fair

"Modest slump?" Uh, when did that happen?

This is pretty typical of Wall Street types. They're always focused on the short-term and neglect the big picture. Who wouldn't expect some declines in a year of mild cap ex and a huge acquisition? In the dotcom days, no one would've blinked an eye.

Exactly Jeff. And, he seems completely focused on the "parks" end of their business. Much of Cedar Fair's growth is coming from the "resorts" end and there are tremendous opportunities in that segment of the business.

I would argue that there are still plenty of parks out there that Cedar Fair might set it's sights on too.

So...is his concern with the structure of the company (a limited partnership), or the health of the business? It's kind of hard to tell from this somewhat rambling article.

I'm really looking forward to CF's Q1 financial results to see the effect of Castaway Bay on "out of park" spending...

And, when CF is ready to make their next acquisition, does anyone else think it may not necessarily be a park? CF is showing a knack for being a hotelier...what about a buyout of Great Wolf or Kalahari? Just a thought...

I think the first two comments missed the point of the article. Cedar Fair's return on investment isn't as rosy as it initially appears because dividends from limited partnerships are taxed higher than normal corporate dividends. This is a good stock for lower tax brakets or in tax deferred accounts (like a 401k).

Personally, I learned a tax lesson the hard way by putting FUN stocks in my RRSP (the Canadian equivalent of a 401k). I later learned that the tax agreements between US and Canada regarding registered retirement investments allow dividends from normal corporations to accumulate tax-free, but these agreements do not include limited partnerships like Cedar Fair. The US government clawed back about a third of my FUN dividends through foreign-ownership withholding taxes.

While Cedar Fair is one of the best performing companies in the entertainment sector, there are better investments in other sectors in terms of return on investment and tax efficiency.

This is like the stories of people stuck on lift hills, they only hit the news when there's nothing else worth reporting.

I am in a lower tax bracket so my comments were on the mark given the story. If I were in a higher tax bracket I might feel differently.

If I were in a higher tax bracket I might not be spending so much time on Coasterbuzz. Conversely, if I didn't spend so much time on Coasterbuzz, maybe I'd be in a higher tax bracket.

Oh well.

Thank you so much to the guy that wrote this BS, because now the stock is down 1.00 today.

That's your cue to buy. :) My monthly Sharebuilder hit is tomorrow, so that's pretty good timing.

Yeah, you only lose money if you sell.