Six Flags mulling stock move to avoid delisting
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.
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.
I am suprised they are doing so poorly
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!
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!
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