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No. of 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.

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?

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