Welcome to Theme Park Insider! Join the community or log in
Theme Park Insider
Facebook Twitter YouTube Email Newsletter

Six Flags mulling stock move to avoid delisting

Written by
Published: October 3, 2008 at 10:42 AM

Amusement park chain Six Flags is considering a "reverse stock split" in an effort to push its share price above the $1 cut-off for being removed from major stock exchanges.

Six Flags' stock has been languishing a few cents below a buck and if it doesn't rise soon, and stay there, the stock could be delisted.

A reverse stock split would consolidate shares, giving shareholders, say, one "new" share of Six Flags in exchange for every five "old" ones. Yeah, it's an accounting dodge, but it can be effective, not only in avoiding delisting, but in improving traders' perception of the stock.

Six Flags' financial troubles are well documented (search the TPI archives at right for plenty of posts, threads, etc.) , saddling the company with debt that's made turnaround at some parks too little too late to pump the stock price.

Readers' Opinions

From Derek Potter on October 3, 2008 at 8:55 PM
I can't say I haven't thought about buying SIX stock for a dollar, but I'm not sure that they are equipped to thrive in a really crappy economy, and while it wouldn't be much of a loss, I just can't bring myself to buy.
From Anthony Murphy on October 5, 2008 at 5:59 PM
I am suprised they are doing so poorly
From John Quinteros on October 5, 2008 at 8:58 PM
Oh man, I was watching CNN with the Stocks rolling at the bottom of the screen. I saw Six Flags go down a few points. I don't know what all of this stock stuff is supposed to mean, but if it will help Six Flags, I'm all for it!
From Scottland Jacobson on October 6, 2008 at 4:58 PM
I saw many improvements in Six Flags when I visited Great America yesterday. They ARE making the promised changes to make it a friendlier, family-oriented park. I hope they survive!

This article has been archived and is no longer accepting comments.

Previous article: Have you submitted your favorite theme park travel tips yet?

Planning a trip to Orlando?

Walt Disney World

Insider's Pick: Get all the best advice from ThemeParkInsider.com in one convenient book! Theme Park Insider Orlando 2014 offers you the insight, background, and how-to skills that will help you enjoy Walt Disney World and Universal Orlando like, well, a theme park insider. Save yourself time and money by learning how to visit the Orlando-area theme parks the insiders' way.

Get it! In paperback | For Kindle | For iBooks