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.

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