Great Adventure Outpost

Industry => Industry News => Topic started by: GADVwow on August 22, 2008, 07:30:03 AM

Title: FUN benefitting from SIX's near bankruptcy?
Post by: GADVwow on August 22, 2008, 07:30:03 AM

http://www.usatoday.com/money/markets/2008-08-19-bankruptcy-winners_N.htm

the relevant portion:

Quote

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?Six Flags. (SIX) The amusement park operator defaulted on debt on June 24, S&P says, just ahead of the critical summer vacation season. Six Flags shares are down 44% this year. Meanwhile, rival Cedar Fair's (FUN) results have exceeded expectations, and its stock is up 6%.

So far, benefits to Cedar Fair have been indirect, says James Hardiman, analyst at FTN Midwest Securities. In some parts of the country where Six Flags and Cedar Fair compete directly, such as California and the Washington, D.C., area, Cedar Fair may benefit by being better able to afford promotion, he says.

Cedar Fair also benefited indirectly by buying Geauga Lake, a park near its Cedar Point park in Sandusky, Ohio, from Six Flags in 2007 and closing the amusement park portion in time for summer. Plus, it's unlikely Six Flags can afford to lure visitors by building the same jaw-dropping rides Cedar Fair can, he says. "The gap with Six Flags will only widen," Hardiman says....