| Six
Flags Skyrockets +40% In One Short Month |
Published: January 18, 2006
It has been an
exhilarating ride for shareholders of amusement park operator Six Flags
(PKS) over the last few weeks.
After launching a
proxy battle back in August, major shareholder (and Washington Redskins
owner) Dan Snyder finally took control of the firm in late November.
When a last-ditch effort to put the company on the auction block came up
empty and failed to attract a buyer, a majority of shareholders voted to
oust three board members in a management shakeup that eventually led to
Snyder's installation as the firm's new chairman. Meanwhile, his
business associate, Mark Shapiro, was chosen to replace former CEO
Kieran Burke.
Saddled with a heavy debt load,
sluggish sales and mounting losses, Six Flags' former management
struggled to come up with any answers. Under new leadership, the
company's goal is to adopt a more family-oriented approach and to better
leverage its valuable rights to Time Warner's (TWX) popular Looney Tunes
characters. At the same time, Snyder will not hesitate to raise capital
and unlock shareholder value by selling off land, underperforming parks,
and other non-vital assets.
The recent shake-up at PKS is a
major positive, and I'm confident that the firm's new board members will
take the necessary steps to get the company headed in the right
direction. Apparently others agree, as the stock has gained more than
+40% over the last month, climbing to a new 52-week high of $10.59.
Good investing!
-- Paul Tracy
Editor
StreetAuthority
Market Advisor
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Paul Tracy
founded StreetAuthority and became Editor in Chief in 2001. Prior to
that he spent several years as Managing Editor at a multi-million dollar
financial publishing firm with over 150,000 subscribers. In addition to
his role as managing editor and lead financial writer, he was also
responsible for equity research and managing a team of seasoned
professional financial writers, researchers and market commentators.
Paul's previous experience
includes a position at Robert W. Baird & Co.'s full-service
brokerage operations as well as economic research work on a Money and
Banking project funded by the National Bureau of Economic Research. He
has also spent time doing outside consulting and research for the
University of Virginia, has appeared as a guest expert on several
prominent financial radio shows, and has been a featured speaker at
various investment conferences across the U.S.
Paul graduated with a B.S.
in Finance and Management from the McIntire School of Commerce at the
University of Virginia.
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