Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: stillwater9999 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20703  
Subject: FUN Anyone? Date: 10/11/2009 10:04 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
Wondering if anyone else had taken a recent look at Cedar Fair? This company (an MLP by the way) that runs a number of large amusement, water parks etc. had been a very solid if somewhat boring investment for many years. Paid a decent distribution and showed some moderate share price appreciation.

They made a large purchase of Paramount Parks in 2006 for $1.25 B taking on large debt. They have had problems since greatly worsened by the recent economic downturn. Earnings dropped sharply in 2007 but recoverd somewhat last year. Most recent Q (0.13) dissappointed analysts hitting the stock. EPS for 2009 are expected to be around 1.35, making the current 10.3 share price about 7.6 times. P/S is aroung 0.6, P/CF 2.8 numbers that would be attractive but there is that large debt.... FUN amended and extended its Credit Agreement back in August.

http://finance.yahoo.com/news/Cedar-Fair-Amends-and-Extends-...

Net Profit Margin has dropped substantially from the best years but it still a good 7-8%. Insider ownership is only about 4.4% per SEC filings.

Last week we saw Blackstone make a major amusement park acquisition from InBev perhaps signalling the bottom of the market. FUN will be reporting earnings from the key summer season om 11/3.

Value Line sees strong recovery potential here projecting total annualized returns in the 40% range if the amusement park attendance rebounds and FUN can service the debt.

FUN pays a current distribution around 9%.

While my strong preference is for better balance sheets, FUN might prove to be an intersting speculation on a turnaround.

Anyone else for FUN?

sw
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement