Could this be the end of Six Flags--as we know it?
It could just be an internet glitch--I don't know--but I just got an alert that PKS was selling at 5 today--less than half its value the day before.
If this is true, Wall Street is pummeling the company for its earnings results. Nobody laughs off a 55% drop in their stock value. This is never good news, but for a highly leveraged company it's even worse.
Will anything restore the stock's value? Will it push them into deep trouble? Will anyone step in to purchase them? Stay tuned....
-'Playa
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The CPlaya 100--6 days, 9 parks, 47 coasters, 2037 miles and a winner.....LoCoSuMo.
That's definately true, 'Playa. I about fell off my chair reading that. Although they're down 55% today, I seriously doubt anyone would step in to buy them out, especially another theme park chain. Six Flags is way too large to assimilate into someone else organization right now. I really don't think the Cedar Fair's, Alfa's and others want to expand their operations right now due to a soft economy.
I do look for SF to shift their focus from capital improvements over to park operations. They would be able to make up some serious ground focusing on customer service. A happy customer is a returning customer.
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"Is it worth it, to play that game? Is it worth it to sell your name?" -- Jack Friday
The stock almost lost 7 bucks already today, due to a crappy earnings report (reported a loss).
I'm thinking the stock may turn around, Best Buy took a big hit and now it is back on a steady incline back up.
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Six Flags Worlds of Adventure Online
*** This post was edited by Mr. Villain on 8/13/2002. ***
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Bob Hansen
A proud CoasterBuzz Member
"So you think your'e really brave, gonna see the DEMONS cave.
You silly dude, your'e only food, for the DEMON"
As much as I think the acquisition and cap ex has been insane the last few years, I think that $5 is still too low. They had a bad quarter, but that doesn't mean it's the end of the company.
I personally think that in light of Cedar Fair having better attendance at most of their parks and Holiday World obliterating its former records, that being in the amusement park biz isn't a bad thing these days, even in this economy. However, there are a lot of choices out there, and you've got to deliver (gasp!) good customer service. I don't think we need to visit how half of the chain is doing on that aspect lately.
Buy PKS when it levels out tomorrow or the next day, I'm sure it'll come back. Or grab a little FUN, which must be down just by association right now. It's a steal at $21 and the dividends kick ass.
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Jeff - Webmaster/Admin - CoasterBuzz.com, Sillynonsense.com
"Let's stop saying 'don't quote me,' because if no one quotes you, you probably haven't said a thing worth saying." - Dogma, KMFDM
Jeff said:
However, there are a lot of choices out there, and you've got to deliver (gasp!) good customer service. I don't think we need to visit how half of the chain is doing on that aspect lately.
Six Flags...making "let's go see a movie instead" a more viable option....;)
wahoo skipper said:
I wouldn't be surprised to read some day that Six Flags gets investigated for "creative accounting".
They need to do some "creative trash collecting".
Public companies suck .. SUCK SUCK SUCK.
Never deal with them, and never, *EVER* work for them.
Cam.
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Cameron Silver
I am currently an employee of WorldCOM, at least until August 30th. I have watched our stock price plummet from almost $100 to nothing. Every day we thought that it would start going back up. It never did. The company screwed up for too long and could not make a quick fix to spur a recovery. Now, I would not compare Six Flags' business to WorldCOM, apples and oranges. But, when it comes to investors, it is the same deal. Investors lost all confidence in WorldCOM. Although the company has great products, they saw that the company was poorly run.
This was WorldCOM's true downfall and will be the same downfall that Six Flags will encounter. Their company's management team does not know how to effectively run a business. This can be seen in the lack of customer service, the poor ride reliability and finally, the lack of skill in their field of running amusement parks. (This lack of skill is certainly my opinion, if you want to discuss in detail...email me.) Investors, know this. They visit Six Flags parks and have the same stressful days that you and I do. (I dread going) They also know what to look for when it comes to finances. Six Flags is not doing well, but other amusement parks are. Big hint that there is something not right. Investors lose confidence and sell, driving down the stock price.
All in all, Six Flags is a reactionary corporation that has become an unstable giant. Will they be around in 5 years? YES! But with the same owner and management? You can bet your season parking pass, NO!
PS: I am at work, with nothing to do as I am getting laid off! Email me! benjamin.parthree@wcom.com
*** This post was edited by bmp143 on 8/13/2002. ***
Maybe if airline security wasn't grabbing my balls everytime I wanted to get airborne I'd be flying a lot more.
Actually, bmp143 is right...
This is coming from a few people "who know". The chain is very aware of the reputation they have garnered, and guess what? Some BIG changes are in store...
I say, keep your eyes on your local Six Flags park, that is, if you still care... ;)
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"Escuse me, can you tell me where the heck the Mystery Lodge is"?
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I love six flags
*** This post was edited by Drop208 on 8/13/2002. ***
Got in at $5.11 a share today. As bad as Six Flags rep may be with us coaster enthusiasts and while a lot of that is earned, the Six Flags business plan has been sound over the years. You can buy a smaller park, amp up the rides, and it will create larger crowds.
Six Flags got tripped up along the way by not following through with the plan. Customer service was modest at best. It went for a season ticket pricing strategy that went for the local repeat business but ignored the outsider who would spend more on a typical day at the park.
I bought in today, but not because I think the company is doing things right. It has taken on too much debt to grow its chain. Low interest rates are a bonus for refinanced debt. But the company also owns choice real estate in its parks. At five bucks a share, with strong assets despite the debt, there is more upside than downside IMHO.
I believe the dynamics of the amusement park industry in many respects defies the usual law of the economy of scale. I believe Kennywood, Holiday World, Waldameer and many others prove the advantage of locally owned and run parks. Once a megapark reaches a certain size, it may be possible for a corporation to take it over and run it, but the challenge of building a park up from local to regional or national may best be handled at the personal level.
Given this view, I think KK and some other SF parks might survive and even prosper, but they may end up doing so as buyouts by local groups. I see the parks as having potential but perhaps not with faroff Six Flags executives making decisions.
Current developments might encourage SX to sell off a few of their smaller units to raise capital, and the falling price might make it attractive for local groups to make an offer.
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Visits to Knoebels in 2002: 6
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