The situation at Six Flags just keeps looking more grim. Aside from the company blaming the weather for their misfortunes, there are many other negatives surrounding the second largest theme park. Six Flags has not turned in a profit in 10 years and has 2 billion in debt. Their bonds have been downgraded to just above junk bond status and they have recently suspended their dividends.
Also, the management just seems to be very… shady. How do you not mention EPS? That’s basically all we care about in the end isn’t it? Also, the management keeps saying they have a ample amount of cash but in reality, they can’t even cover payments to preferred shareholders that are due next year.
Lastly, I go to amusement parks once in a while and they are a total rip off. But wait… shouldn’t this be good for Six Flags. I’m spending 5 bucks on a bottle of coke and shooting basketballs at a tiny rim for 10 dollars trying to win a teddy bear. By the way, Six Flags shares are cheaper than anything you can get at the amusement park, but probably still have less value.

I don’t know if there are shares to short. Also, they tried to find a buyer to no avail so I don’t think this will come back to bite.

To make things clear, I don’t hate poker just because its my second post on shorting a poker stock, btw the first one (PTEK) I posted is down 15% in a month . I love the game and follow it almost as much as I do the market. But unfortunately, all indications for the WPTE are that it is going bankrupt.

Why?

1. They will more than likely lose 3 million dollars on the their season 6 airings. Look at their earnings, ouch!

2. The Game Show Network has opted out of a contract to air season 7 because of the loses in season 6. No TV network (not that GSN is particularly a prime time network) is a death sentence

3. The stocks one year plunge from 4.07 to 95 cents with only 1 up month out of 12 and basically no large volatility and volume spikes says this one is comfortably a short play.

Marvel Entertainment, as most of us in my generation are familiar with, has brought us Spiderman, Hulk and the recently acclaimed Iron Man. Aside from the array of sequels and new comic based movies coming in the near future, Marvel is also fundamentally bullish. The company has raised guidance 20 cents from $1.35 to $1.55 after beating first quarter estimates by 11 cents per share. Furthermore, these estimates do not even include Iron man which could pull in 200 million in profits alone. Marvel’s 19 PE is relatively cheap and insider buying is occurring even after the stock has advanced. New Marvel movies coming out include The Incredible Hulk, Captain America, Nick Fury, Thor, The Avengers, Wolverine and Punisher 2. Technically, Marvel is trading close to its 52 week high and I would wait for a small pull back but the upward trendline and support are solid while the range is small.

Check it out.