Six Flags at risk for bankruptcy

It's pretty sad when you can buy about 12 shares of SF stock for the price of a Happy Meal.

I had owned Six Flags stock in 2002 or 2003. I think I paid 5 something, can't remember for sure. Do any of you think it would be worth buying a few hundred shares on a gamble it may recover? Or if they file for bankruptcy do all the shares/ownership always get wiped?

If Six Flags files for bankruptcy protection, current stockholders almost certainly will lose all of their investment. SF needing to file for bankruptcy protection within the next year seems very likely. However if SF can pull through this without bankruptcy protection, current investors could see a large gain. SIX is currently trading at $0.16. If it survives this crisis, SIX could easily increase 10-fold. Before investing, ask yourself this question. Would I be comfortable betting a hundred dollars on lottery tickets right now realizing I would likely lose all of that money? That is the sort of gamble you would be taking with SIX. Another interesting SIX article (sorry if this has already been linked to - there are several SIX threads currently ongoing)

http://atlanta.bizjournals.com/atlanta/stories/2009/03/09/daily108.html?ana=yfcpc

Winston said:
I had owned Six Flags stock in 2002 or 2003. I think I paid 5 something, can't remember for sure. Do any of you think it would be worth buying a few hundred shares on a gamble it may recover? Or if they file for bankruptcy do all the shares/ownership always get wiped?

You could buy 100 shares for 16.00
if it recovers to where it was a year ago 2.50
you would make 234.00

I read somewhere recently that when a company most vehemently denies that they are filing for bankruptcy, that's usually when they go Chapter 11.

So what does it mean when a company comes out and says, "We're actively preparing for bankruptcy"?

Are there any other options open to them? Given the stock price, I presume a share dilution is pretty much out of the question...!

--Dave Althoff, Jr.

Thanks for the info and insight. Maybe not 100 but I wouldn't mind say, 40-50 worth. I could consider that a night out or something. I don't enjoy throwing money away but I think one would have to approach it like they are going to be out the $$$.

So what does it mean when a company comes out and says, "We're actively preparing for bankruptcy"?

It's a message to the debt-holders: "You can negotiate with us, or with the judge that oversees the bankruptcy proceedings. Your call."

Here is an article which has some interesting information and quotes from Mark Shapiro. Among other things he says they are trying to restructure their debt and stay out of bankruptcy court. Also, that SFMM "is coming off one of it's best seasons ever" and that SFMM "is highly profitable and we intend to keep it that way." Take those comments for what you think they are worth. He also confirms that MM is getting a new coaster in 2010, and that SFHH is getting a new attraction also in 2010.

RideMan said:
I read somewhere recently that when a company most vehemently denies that they are filing for bankruptcy, that's usually when they go Chapter 11.

Right. Look at GM- they're in more or less the same situation and pushing the same line.