Six Flags vs. Cedar Fair: investment compared

Posted | Contributed by beast7369

Motley Fool takes on the classic Six Flags vs. Cedar Fair debate in an investment sense, comparing the only two pure amusement players in the stock market.

Take me to The Fool.

Cedar Point alone is a better ivestment than any of the Six Flags Parks with the exception of the surgeing Six Flags Magic Mountain. Its not just the fabulous rides at Cedar Point that make it a sure fire winner, but the scenic atmosphere with the beautiful Lake Erie backdrop, and the In-Park resorts such as my own personal favorite, The incomparable Hotel Breakers, And the food is a noteworthy experience too. I tilt my hat to you CEDAR FAIR.
Jeff's avatar
This is a really interesting read. I think from an investment standpoint alone, the dividends make FUN an obvious choice. One thing that neither of the fools mentioned is that there has to be a point where the insane capital spending by Six Flags has to stop, and I suspect that point is very close. When you stop that spending, your competitors won't, because they were pacing themselves.

Interesting too, that the vote at the end was overwhelmingly in favor of purchasing FUN over PKS.

The best part of the argument is that it doesn't even get into actual operations. When you add in our frustrations with the Dutchmen and Deja Vu's, not to mention the generally poor operations at some (but certainly not all) of the parks, you get an appreciation for customer satisfaction levels, and they aren't as good as they could be.

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Jeff
Webmaster/Admin - CoasterBuzz.com
This is just one article CBS news(and merril lynch) calls PKS one of the top picks for this year, in the last week the stock has risen 2 points. This is just one view of the stock, dont make it out that FUN is a better than PKS just by Motley fool come on how many people really know who they are.
Also Jeff why would you even post this, I can see this becoming a big war CFvsSF and I do believe you try to avoid these on forums why make it news.
This will turn into who's park is better not what company thinks the stocks are better.

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Army rangers lead the way
*** This post was edited by supermandl on 6/28/2001. ***
I think the comment about Six Flags being a hare, and Cedar Fair being the torotise, is the best argument I've ever heard. Cedar Fair definetly has the better parks, hands down Cedar Point IS the best park in the world, it has been and it always will be. If you want to talk about a race between the two companies, the outcome is clear as glass, the torotise ALWAYS wins the race.

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Welcome back riders, how was your ride...Enjoy your day, here at Cedar Point, America's roller coast.
And Joe did EXACTLY what smdl warned about (didnt take but 10min)... :rolleyesagain

Anyway, yeah, I've seen many shows that have said that PKS was a good buy now. Funny thing was, in those quick quips, FUN was conspicously absent. In fact, the only other 'amusement' investement they talked about was Disney, saying that Disney's amusement parks would keep the stock high.

Whateva!
jeremy
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DJ play my mutha(bleepin) song!
Dont get me wrong people I love these stock's I own 25 shares of each(not much just a minor investment in my fun), I consider my FUN stock my sturdy stock out of the 2 and my PKS my mexican jumping bean because it always all over the place.
Like Jeff said FUN you get more dividends back but if your in it for the short run buy PKS when its low and sell when it jumps up a fewpoints, there is money to be made of both of them.

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Army rangers lead the way
WOW Now this is interesting! The main thing I think some people are missing. Is BOTH are great stocks to own! It's like debating over two great things :) Now, I do own both stocks in Both. And I can tell you both do well. Now if you want to know which is better I can tell you my own opinion. PKS definetly has more action and nail biting. FUN does things rather slowly but mostly positive. PKS (I THINK) will do better in the long run do to volume. Though I do think it will take a BIG hit with in the next 5 years. BUT I think it will come back even stronger. But if you're like me you're in it for the long run, and just let it go. But overall in the end I think they are both relatively the same and if anything PKS has a slightly higher edge (even though I prefer CP (most of time)over any SF park) :)

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"The Future of Roller Coasters"
RollerCoasterGod
E-mail: RollerCoasterGod@aol.com
Jeff's avatar
Why would I post this? Why not? It's certainly about the industry. My park is better than your park posts will be deleted.

I don't care who has the better parks. Neither one is a "growth" stock, so short-term investment is pointless.

Money I made on dividends last year from $38,000 worth of FUN: $3,000.
Money I would have made on dividends from same investment on PKS: $0.

I chose wisely.

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Jeff
Webmaster/Admin - CoasterBuzz.com
How can you say PKS short term investment is point less. Lets take your $38,000 and say you bought PKS stock when its low like I said. Low last week was 17.50 thats 2171 stocks you buy with your money, now the stock today 1 week later is worth 20.10 thats a 2.6 jump in a week you sell and make 5644.60(-penalty fees and such). This stock jumps up and down so much that a hit and run investor can make money. Remember this is not a good way to invest but alot of people do it, its a high risk. This stock price has gone in the last year between 13.50 all the way up to 24.25, people out there are making money on this stock.

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Army rangers lead the way
Jeff's avatar
We must have different definitions of "short." Mine is a year or less, not a week or less. PKS is right back where it started one year ago. If I would have bought PKS when I bought FUN, I'd be no better for it.

FUN gave me a predictable and steady gain. Unless their parks were wiped from the face of the earth by some nuclear event, there was little chance I would have not made the money I did. I don't know about you, but $38k is a lot of money, and that kind of predictability makes a lot more sense to me.

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Jeff
Webmaster/Admin - CoasterBuzz.com
The thing is I'm saying you try to buy stock when its down but not out. If you had invested($38,000) 10 months ago when it was 13.50 and sold it when it was 24.25 a month ago you would have made $30250(thats alot of money for a short time). Now that seems worth the risk since the company stock was worth around 24.00 the year before. Why would you not expect the company's stock to go back up to the 24.00 price. And yes $38,000 is alot of money that's what it cost's me for my company truck's(snowplowing and construction).

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Army rangers lead the way
I like FUN better for the next few years but PKS this year.

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Cedar Point, doesn't get any better then that:)
Jeff's avatar
I understand what you're saying but a year ago no one could have predicted what would happen with PKS or any stock. It could have gone the other way as well. When it comes to that possibility, I'd much rather stick to the sure thing, that's for sure!

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Jeff
Webmaster/Admin - CoasterBuzz.com
Jeff, I know you can't be speaking for everyone. I'm not a bit frustrated with "my" flying dutchman, Batwing. So what it opened a little late? It's not like I didn't have six other coasters and multiple flatrides to ride. Let's put it into perspective. It's a Vekoma issue, pure and simple. On Tuesday, Vekomas engineers were still putting together the third train on Batwing, and they were doing the same thing exactly one week ago. The last few years Intamin was earning our disdain for late or faulty products, and now it's Vekoma turn.
Jeff's avatar
It doesn't matter who is building the rides. They're not open, or opened late.

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Jeff
Webmaster/Admin - CoasterBuzz.com
Lets take a look at the stock prices of both parks, pks at one time was higher than fun, now things have turned and fun is higher and has been averaging about $2 more than pks. Also the annual dividends on FUN, makes it worth a good buy. I researched both parks and am impressed with FUNS overall financial outlook. That's why I decided to invest in FUN.
If you really want to see some proof as to who has the better investment, take a look at this website.

http://finance.yahoo.com/q?d=c&c=PKS&k=c1&t=1y&s=fun&a=v&p=s&l=on&z=m&q=l

Try this site, you'll see what I'm talking about.

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Welcome back riders, how was your ride...Enjoy your day, here at Cedar Point, America's roller coast.

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