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Monday, October 16, 2006

Cramer Says Tear Down Six Flags and Make Some Mad Money

Cramer also discussed Six Flags (SIX) as a way to make money. He paid $147 for 3 people, but you can get less with a crushed Coke can and the lines were long and you don't enough rides for the time there.

They operate 30 units in North America. He wondered with poor service and risk of thugs he worried about bankruptcy risk. He said that some research that confirmed his fears, but as a real estate play they could make a mint if they tore down their parks and sold off the land. He evaluated the rating, and even the bears think there is only $1 or $2 downside, and he noted CRT Capital naming this as a Strong Buy because the young CEO may get a grasp of it and the land values alone are huge. He said the theme park can be a theme park because of its real estate. He said the bad numbers are bad, and thinks the $4 is the floor. He calls it a "2 down 6 up scenario", meaning it can only fall $2.00 and can go up as much as $6.00 from current levels.

Jon C. Ogg
October 16, 2006
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