Theme Park Stocks

[thesman]

Someone thing I've wanted to talk about for a while are amusement park stocks. Its obviously one of the more interesting stocks to own with them changing significantly every year and changing when parks have their off season. It would be interesting to know what people have invested in and to give advice to other people who have or looking to invest.

Here are the main ones: (let me know if I'm missing any)

 

Six Flags: Six Flags Entertainment Corp NYSE: SIX

 

Cedar Fair: Cedar Fair, L.P. NYSE: FUN

 

Disney: Walt Disney Co NYSE: DIS

 

Universal (parent company that owns them): Comcast Corporation NASDAQ: CMCSA

 

Sea World: SeaWorld Entertainment Inc NYSE: SEAS

[theymitbgi]

Isn't it unfair to group Disney and Comcast in as theme park stocks? I would think very little of their overall revenue is generated from the parks.

[Jew]

^Not true at all.

 

Theme parks made up 1/3 of Disney's revenue, which is quite impressive given the amount of properties they own.

 

Theme parks are also the 2nd most profitable division of Comcast and helped offset lower revenue at the movie studio for the NBCUniversal division as a whole.

[coasternut]

I'll tell you both Cedar Fair and Six Flags have great dividends. SIX is 5%, and FUN is 6.7% Where can you get that type of return on your money these days? Also that's not taking into account any stock appreciation.

 

I own both, but 6 Flags is making me more money right now.

[milst1]

Great idea for a thread.

 

After we got into the hobby we bought FUN, SIX, DIS, BUD, and BX. Each of them is a good story.

 

Bought BUD in 2008, but they were acquired by InBev later that year and we were forced to sell. We didn't buy SeaWorld when ABInBev spun off the parks business. SEAS is hurting and we wouldn't buy it until there are clearer signs that things are turning around. I didn't think that the Blackfish controversy would get any traction but I was wrong, and the company has never gotten completely in front of the problem. I have to admit that after the disappointment of Antarctica: Empire of the Penguin, I was doubting the previous leadership's decision-making, so I hope that the new CEO has a plan.

 

We bought BX at 15. They have since sold their half of Universal Orlando, but they still own 22% of Merlin. We're probably not buying Merlin as we're already exposed and buying foreign stocks is always a transactional nightmare.

 

SIX went bankrupt in 2009 and we lost all of that, which really sucked. We never invested a great deal because these were really just vanity stocks for our hobby, but it always hurts to lose money on a shitty bet and know that you're a little worse off for retirement. We bought because we were happy with the management, but I didn't look closely enough at the balance sheet before doing so.

 

Bought DIS at 35, now 94. I still like this stock but I can't buy more at this price. If I were younger, maybe.

 

But my favorite story is FUN. We bought at 27. During the recession in 2010, Kinzel and his cronies on the board panicked and accepted a buyout offer from Apollo Global Management LLC for an absurd 11.50 a share. Thankfully, all of the moms and pops in Ohio who own Cedar Fair stock rejected the board's recommendation to accept the offer. The stock has since been has high as 53, now at 47.

 

If I could, I would invest in Arle Capital Partners, which owns Parques Reunidos.

[gisco]

I had Disney stock at one time. I owned it when they first came out with the Visa card that you could earn Disney Dollars with. They offered it to stock holders first before the general public. My card has printed on it Member Since "Day 1" and "Charter member" as one of the perks. It would be cool if you could buy Disney stock with the dollars but you have to spend it at the resorts or the Disney store.

[Shavethewhales]

Reviving this thread because I'm getting more into personal investing.

 

Anyone betting long on SEAS? I think that with the recent announcement that the killer whale shows are being phased out of San Diego, the current negative PR trend towards them will slowly back down. There is some backlash against them for opening up the same type of shows in the middle east and elsewhere though... but I think it's a good bet for the long haul.

 

December seems to be the best time historically to invest in both FUN and SIX.