Do any Insiders invest in theme park companies? What are your recommendations? What should I avoid?
Simply based on upcoming projects and not on statistical projections, I think Disney and NBC/Universal would be safe bets for the new year.
Thanks for any help.
However, perhaps keep your eyes out when Six Flags make it back on the stock market (it was knocked off the NYSE when their stock plummited). Chances are, it will start out low and should rise. It couldn't go any worse in stocks for them.
But just go with NBC and Disney if you are planning for the long run. Both companies have alot of assets that will keep the stock from high fluctuations.
I have stock in Disney
Comcast tried to buy Disney, but it never went though!
Disney is available!
Then again, I am not sure if theme park stock is really good to get. I mean, Universal and Disney are both multi billion dollar entertainment corporations so the stocks might be solid for reasons other than the parks. Six Flags does not have that luxury.
I hope I am wrong, but I would not put any money into that dog of a stock. Not now, anyway.
The only affordable and somewhat decent option might be Cedar Fair (FUN), despite the news of their recent upper management squabbles. At the very least, Cedar Fair generally keeps their spending in check and is focused on building well-rounded parks that cater to a wide range of demographics. I don't know that their stock will ever "go through the roof", but it could make you a few dollars in the long run.
But, like others have said, there are probably much better ways to invest your windfall.
What do I know, though? I am the guy who owned a 1,000 shares of Marvel (MVL) purchased at $4/share. I held it for several years before selling when it hit $10/share. Seems like a nice move, until you consider the fact that Marvel stock eventually surpassed $50/share and the company was purchased by Disney last year.
Peter Lynch, I am not, although I did follow his mantra: "Invest In What You Know." I just didn't stick with it long enough.
Disney is a solid buy, but may be a little overvalued at the moment, after the recent stock market run-up. Actually, I would wait for another downturn in the market before jumping into anything.
The Disney stock is a decent play if you are willing to hold on to it for the long term. It's a fairly expensive buy for such a small return. Don't expect it to rain cash on you though.
At 50 plus a share, I wouldn't touch Six Flags with a ten foot pole. Right now, they are financially fit, but that's only due to bankruptcy. Their attendance is up, but are those people spending money? and can they keep that number up? To me the stock is already overvalued.
The issue with NBC Universal is that there are so many moving parts to it. If I were investing in the Universal parks alone, I might do that, but that's only a small part of the company. There are a whole lot of players in this one, and I think that certain industries involved in the company are headed for a little shake-up. Anything that involves movie studios, cable companies, and ISPs is a risk, and I'm not sure the reward is worth the risk in this case.
Cedar Fair was a really good buy about a year ago when the price was under 10 bucks. It still is a decent buy because the company looks to have the Paramount debt load under control, which was a purchase uncharacteristic of a company that's usually fiscally conservative...and the economy is starting to recover as well. The shareholders apparently believe in the company, because they recently voted down a lowball takeover bid by one of the largest shareholders. There's still a lot of shakeup in the boardroom, but I think it will all work out soon. The real curiosity will be when Dick Kinzel retires and someone new steps into the drivers seat. This one is an affordable buy at around 18 bucks right now, and I do think that as the economy recovers more, this stock will continue to go up. Maybe not quickly, but barring any market crashes or calamities, this one is a pretty good one to have (raises hand).
If there is a park company out there that I would invest in with complete confidence, it's Herschend Entertainment. They however, are a private company, and if they are wise they will remain that way. Few things can dilute the quality of a product like its company becoming beholden to the stock market.
Just remember that entertainment investments have a lot more factors that affect their worth. Not only are there the management, financial, and economic factors, but there are also shifting cultural trends, finicky company direction, and individual taste. In other words, don't buy a stock just because you love the company's product. If their management is bad or they are incapable of evolving, you might as well be tearing up money and throwing it away.
However, I do appreciate your other comments. Maybe the entertainment industry is a little unpredictable for someone as inexperienced as me.
I am not sure about Universal now due to the Comcast takeover.
I think maybe we should make a list!
Disney (DIS) last price 39.94
Six Flags (SIX) last price 57.34
Universal...parks jointly owned by NBC and
Blackstone, NBC jointly owned by Comcast (CMSCA 23.60) and GE (GE 20.04)
Cedar Fair (FUN) last price 17.73
Blackstone (BX) last price 15.94
Not Theme Parks stocks…
OKE – natural gas pipelines in TX, KS, OAK
VZ – Verizon… Nice Dividend
Remember Buy High sell Low – or something like
Disney's done very well over the last 2 years. I'm hoping for a split at $45 or $50...
The Cedar Fair stock is indeed a pretty good buy at around 18. I think it will hit the 20's in the not too distant future. Disney is a pretty fair investment too, although the return might not be what people think it would be.
I was smart a few years ago when Six Flags was threatened with Delisting for stock value being below a dollar and I jumped on it.
I blew a whole paycheck buying stock and now it went from 35 cents per stock to over 53 bucks. I am glad I made the investment.
Thanks for all the great advice. Cedar Point seems like a steal.
A lot of companies are bouncing back big because they posted "gains". Many of the gains were really because the recession was over and the companies got back the business they lost. Those are the stocks you want...well known companies that haven't quite recovered from the economy but will do so eventually. Example...construction related companies. Check out the latest news on Caterpillar and their big 4th quarter. Certain retail stocks are worth looking at, and also bank stocks, which are dirt cheap right now. Risky, but cheap. The banks that make it out of this mess will be in a good position. In the theme park industry, Disney and Cedar Fair are the ones to look at.
Walt Disney World's Magic Kingdom
Disney's Animal Kingdom
Disney's Hollywood Studios
Disney California Adventure
Universal Studios Florida
Universal's Islands of Adventure
Universal Studios Hollywood