On Wed, 26 Mar 2008, jake wrote:
>
>
> On FUN. I love that stock. It's paying 8.2% at today's price. I
> owned it before but was advised to dump it by my tem****arily employed
> ****tfolio manager. Now I want to buy it back. Like it's a no-
> brainer, near a 52 week low and paying a really FUN dividend. What am
> I not seeing here?
>
Looked up the stock on Yahoo.com. Revenue for 2007 decidedly negative.
The negative figure is attributed to a $50+ mil non-cash restructuring
of one of its parks. I think it won't stop there, however.
This spring and summer: $4+ gas, consumers tightening up the wallets.
Unless the firm plans to grease their parking lots with cash, many people
will have to decide whether to mortgage the house (heh, heh) to put enough
fuel in the SUV/minivan to take the family to and from the company's
entertainment interests.
Six Flags, a business that I consider on the same level but much worse
off, is swimming in a sea of red. I'm wondering whether the company will
make it to 2009, despite its plans to expand to Dubai, UAE.
I'm not going to refer to Disney at all. Most everyone who can afford it
visits at least one of the company's parks once in their lifetimes.
Additionally, it has presence all over the world, plus a multi-media
juggernaut on the back end raking in cash from everywhere.
Maybe the incentive checks that everyone's getting will soften the
blow a bit for FUN. Maybe.
-d
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