Stock Market question?

Question

I want to invest in Cedar Fair the them park giant, does this seem like a good idea in the year 2006? What would your reasoning be for this being a good idea or a bad idea.

Answer 1

Doesn't seem to be too bad an idea. The PE is fairly low, looks as tho profit has been growing. Haven't looked at the annual reports and that should be done. It'll get hit pretty hard if the economy slows as some indicators point to. Probably won't do too awfully much of a spectacular nature in the short run.

Answer 2

So you want to have some FUN eh? hehehe

Fundamentally, this stock is very average. In fact, its earnings projections look pretty bad too. Rated 1.0 on a 4.0 scale. There is some money going into it right now since it's been pummeled relentlessly for almost six months.

Technically, it's just coming off of TWO year lows which explains why it has such a low P/E and why people have bought some stock recently. It's at about 26.32 right now and I really don't see it going past 30ish IF it even reaches there. Most likely it'll trade in this 25-29 range for quite a while (unless it breaks below 24.50 in which case, look out below).

So here's my take. You could get it now for the short term and ride is as far as it goes, until it pulls back 0.50 or so. But, make sure you have the discipline to do so.

I don't know if such a slow moving stock is appealing to you unless you like to own amusement parks in which case, don't invest more than you're willing to lose (rule of thumb).

That said, if you're looking to make money, there are many better stocks out there (at least 3000 of them).

Let me know if you have further questions.

Hope that helps!

Answer 3

It doesn't look good. The company has been lowering the profit outlook and slashing their dividend. Also, the company is simming in Debt, and that could be a problem. Six flags is on a massive retructuring campaign so competition will only heat up. I would wait to see what happens on this one before jumping in. Too much debt.