Cedar Fair Stock Price discussion

Wednesday, May 15, 2019 2:43 AM

Why is FUN (aka the Cedar Fair Limited Partnership) doing so terribly over the last few years?? I had bought a bunch of this stock, just as a fun purchase buying stock in something I enjoy, and trying to support my home park. I haven't checked it very often over the last couple years... and I am shocked to see the stock price down over 20% since I purchased in November 2017, and that's including reinvesting any dividends, etc.

I just find it very surprising, since I don't recall reading any detrimental news about the parks, horrible attendance numbers, etc. They've also been investing large amounts back into their parks, which would lead one to assume they're doing well financially. Any insight into why the stock price is just taking a nosedive nonstop these last few years?

--Josh--

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Wednesday, May 15, 2019 9:07 AM

It's not taking a nosedive, it's been relatively flat the last 8 months. It's not really a growth stock, it's an income stock. You buy it for the distributions, which have been remarkably consistent for years. The only way the company will really grow is by way of acquisition.

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Wednesday, May 15, 2019 9:50 AM

I also have FUN stock, I treat it like a savings account that pays me 7% yearly. Didnt buy it as a growth stock for the reasons Jeff mentioned.

Last edited by Dale K, Wednesday, May 15, 2019 5:23 PM
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Wednesday, May 15, 2019 10:30 AM

And it's not a bad idea to just roll the distribution into more units.

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Wednesday, May 15, 2019 10:32 AM

Yes, My first 3 get rolled in but the last one I take cash for Christmas gifts.

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Wednesday, May 15, 2019 4:42 PM

Wait, it pays 7% every 3 months? Or 7% annually, in 4 payments? Because if the former, I am cashing out my entire portfolio to buy FUN.

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Wednesday, May 15, 2019 4:48 PM

Yield is about 7% per year.

https://www.macrotrends.net/stocks/charts/FUN/cedar-fair/dividend-yield-history

If you bought in November 2017, you bought a little off its recent peak (which was in June 2017). Timing matters. Mid 2018 the stock price dropped when attendance was reported to be down. Weather was at least part of blame per management. Don't recall that they totally caught up though end of the year was good.

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Thursday, May 16, 2019 12:11 AM

I appreciate the analysis (plural; analysi?). You're right it has been flat the last 8 months, although it is down 18% for the last 12 months probably due to those poor 4 months from attendance numbers like you mentioned. Yeah I guess when you look at the dividends without worrying too much about the price then it looks a lot better. Overall it's still a losing purchase so far, but I know it will pull through in the long term.

I've had mine set up where the dividends go right back into the stock, so I was just looking at total value including dividends and that's what the 20%+ down was from.

Now that Cedar Fair has purchased the land under CGA, I'd like to thank myself and all you other FUN holders for contributing! Curious what the short-term and long-term financial outcome of this purchase will look like...

Also just read this interesting MSN article from a few days ago called "Cedar Fair expects record revenue in 2019"

--Josh--

Last edited by GooDFeLLoW, Thursday, May 16, 2019 12:13 AM
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Friday, May 17, 2019 2:01 PM

Wall Street doesn't seem to care about FUN or Six Flags having "record breaking years" or exceptional years. Good news comes out, and the stock price seemingly doesn't move much.

Take a look at FUN's stock price in the past fifteen years. It's been incredible ride. I bought in the mid 20's. FUN eliminated the nice dividend, and went down about $5 a share. Cedar Fair almost went private! But, thankfully Apollo Management interfered. Stock price had several years of growth, along with a nice dividends. I got off the FUN coaster in the mid 50's. Why? I didn't like that FUN is an MLP company, making me considered an "owner". (not a regular investor). Thus, I had to file state income taxes in each state they operated in. I loved the gains and high dividends, but didn't have any fun filing state income taxes in CA and other states. Trust me, being an coaster enthusiast it was hard to sell my shares.

Okay, let me hit the block brakes here.....

Long story short; the FUN shares were a growth stock despite no parks being acquired. Just be careful with the high dividend. If they decide to drop it, well....be ready for a wild ride.

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