SixFlags NEXT ENRON? Stock being sold!

I heard from a friend that three top guys from Six Flags sold their stock. I don't remember the total number but it was high. I tried finding some more info on it to see if it was true but all I could find was this site http://www.nasdaq.com/asp/quotes_sec.asp?symbol=PKS&selected=PKS it seems some stock was sold on the 29th and yesterday a form on Risk Factors was filed. Has anyone else heard anything? If I remember correctly wasn't SF up last overall? Why would top EXOs sell their stock?

Here is the story, they sold 575,000 shares they still have 3.5 million shares left that they own.

http://biz.yahoo.com/rf/020130/n30124920_2.html

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Army Rangers lead the way

I didn't know SF was ~ 2.5 billion in the red (page5 on nasdaq.com)

SF has a pretty large debt, but also has the cash flow to support it. Note that the report says that Six Flags is slightly reducing their earnings forecast. They are still talking about a profit of $400,000,000 for the year 2001 before interest and taxes. I don't know what their interest cost is, but even after that they should still be profitable.

This type of stock sale is not unusual. According to the aritcle, it was motivated by a need to generate cash so that the executives could exercise further stock options. ie. So they could by more SF stock at special discounts.

Any time a company says they're "controlling costs" to hit revenue targets after missing their projected target tends to make me nervous. What are they going to really cut? The service level at my park is already in the crapper.

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Jeff - Webmaster/Admin - CoasterBuzz.com, Sillynonsense.com
"As far as I can tell it doesn't matter who you are. If you can believe, there's something worth fighting for..." - Garbage, "Parade"

Well, they could cut staffing on the "upcharge" attractions, or at all the games areas...and with ALL that saved money, they could buy stock in K-Mart or Arthur Andersen....
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PoTP acolyte - remove fear to reply
Son of Drop Zone - PKI CoasterCamp I Champions!!!

All they can cut besides service is would be new capital improvements and big B&Ms. (they won't sell parks since all are profiting)
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My fellow Americans; Let's Roll!
http://www.woodencoaster.com

The lemon chill guys are HISTORY! ;)
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Have you ever considered that maybe it's not the park that's the problem, but YOU?

An idea they might use to save money (maybe they do this already, I don't know) if to fire all food, drink, etc stand operators, then lease out the stands to private operators and charge rent. Free of risk (sales slump), free of a few paychecks, and some easy money.
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My fellow Americans; Let's Roll!
http://www.woodencoaster.com

Bigkirby - That sounds like a great idea, I mean, how cool would it be to have some real good restaraunts inside the park. I'll bet alot of company's would jump at that idea.

Thats what alot of parks used to do... until they realized they could be making more money running the food operations them selves.
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Jes
Jes's Roller Coasters DJ Jes MCS
"Thank You Jeff Putz" "My Fellow Americans, Lets Roll!"

bigkirby - Good idea. Then the food stands would have price wars with eachother

Hey, rollergator, some of us coasterbuzzers actually work for Andersen... and they don't know why...

Either way you cut it, this probably means that we're not going to get our annual company outing to SFGAm in September, when we get a free run at the park from 4-11pm.

Damn my luck.

Olsor, just remember to DIVERSIFY your 401(k), and the quicker the better....oh, and your resume may need updating, this thing is coming right for you...sorry about your erstwhile ERT, too...

Confucius says: "putting ALL your soupbones in one pot makes for bad 'stock' "...

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PoTP acolyte - remove fear to reply
Son of Drop Zone - PKI CoasterCamp I Champions!!!

Good Now the reign of the DIPPIN DOTS GUY CAN BEGIN MUWHAHAHHAHAHAHAHHAHAHAHAH ALL HAIL THE DIPPIN DOTS GUY. With his almight PLASTIC SPOON OF DEATH.
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The Scream Site
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I can't say for other parks, but at SFA most of the food and all of the games are operated by outside contractors.

DWeaver said:
The lemon chill guys are HISTORY!

LOL....Oh no! How will we ever keep up with what is really happening at our favorite Six Flags park? Those people who get their info. from Lemon Chill guys better start looking for more sources.

As for outsourcing, SFOT outsources most of their games, gift shops, food service outlets, and upcharge attractions like Skycoaster and go-carts.

*** This post was edited by bigboy on 2/1/2002. ***

I think it's smart to outsource stull like food and upcharge attractions. However I think parks should keep games and retail on their payrolls. But I think overall outsourcing some stuff results in better service, however, you have to get to a point where you draw a line in the sand as to what you will and what you wont outsource. It all depends on your core competencies.

If there are a few vendors selling for, for instance, at a park, that may result in competition. What I think is more likely to happen, though, is an oligarchy that sets prices to make a comfy profit. ;)