Mr Six is no savior and what changes are in store ??

[Bob O]

Redskins owner buys 8.8 pct stake in Six Flags
Tue Aug 31, 2004 04:08 AM ET
By Jonathan Stempel

NEW YORK, Aug 31 (Reuters) - Daniel Snyder, owner of the Washington Redskins football team, bought an 8.8 percent stake in Six Flags Inc. (PKS.N: Quote, Profile, Research) and said he hopes to influence management to maximize the amusement park operator's value, perhaps through a merger or sale, a securities filing shows.

In a Monday filing with the U.S. Securities and Exchange Commission, Snyder said he has bought 8.15 million Six Flags shares for about $34.5 million since August 11 and may buy more. He said he may also seek a seat on the Oklahoma City-based company's board.

Snyder made his filing through a vehicle called Red Zone LLC. The "red zone" in American football is the area between the defense's 20-yard line and the goal line.

"Management has failed to implement measures to increase revenues and decrease expenses, and its failure to do so has caused the company to be continuously outperformed by its peers," the filing said.

Red Zone, the filing said, "may encourage the company to maximize stockholder value through a possible merger, sale of the company's assets, consolidation, business combination or a recapitalization or refinancing."

Six Flags did not immediately return a call seeking comment. The company has said it is the world's largest regional theme park operator, with 31 parks in North America and Europe, including parks in 15 U.S. states.

Six Flags shares closed Monday at $4.46, near their all-time low of $3.36 reached on August 10. The shares have fallen by nearly half from their 52-week high in March of $8.80. They once traded above $41, in May 1999.

Forbes magazine last September put the Redskins franchise's value at $952 million, top among the 32 National Football League teams. The team in 2003 posted a 5-11 won-lost record.

ATTENDANCE SLOWS

Many theme park operators have been hurt by declining travel after the Sept. 11 attacks.

Earlier this month, Six Flags posted a second-quarter loss of $12.8 million, or 13 cents per share. Revenue fell 1 percent from a year earlier to $356.4 million while attendance fell 4 percent. The company also forecast full-year revenue that fell short of analysts' forecasts.

On August 20, Standard & Poor's cut Six Flags' credit rating to "B," its fifth highest junk grade, with a negative outlook, affecting $2.48 billion of debt and preferred stock. Six Flags' market capitalization is about $415 million, based on Monday's closing price.

S&P said Six Flags, facing a lack of major new rides and a "weak" operating environment, will be forced to discount tickets and spend on marketing to generate more attendance.

Snyder is not known as a shareholder activist.

The Wall Street Journal, citing unnamed people close to him, on Tuesday said Snyder believes he can help turn Six Flags around by revamping its marketing. They said this could involve putting logos, videos and product displays in parks, and issuing Six Flags coupons elsewhere.


The dancing geezer can’t help Six Flags shares
The stock is down 5.5% on a downgrade. The Dow falls more than 72 points despite lower crude prices; volume is very light. There’s big trouble in Twinkie Land.

On a day with almost ridiculously low stock trading volume and lower prices, let’s look at the results of heavy advertising spending.

Six Flags (PKS, news, msgs), the big amusement park operator, has been flooding the airwaves with its ads featuring the dancing geezer Mr. Six. Mr. Six has worked -- at least in terms of being so memorable that people remember him. He has a Web blog and even a merchandise line.

But the ads aren’t generating new traffic to the Six Flags amusement parks.

Attendance is down this year, thanks in part to crummy weather. And the outlook for the rest of the year is cloudy. Today, Standard & Poor’s downgraded the company’s credit rating from B+ to B. It’s still investment grade, but the stock tumbled 5.7% and is parked not far above its 52-week low. For the year to date, it’s down about 44%.

[Virtua Tennis]

Red Zone, the filing said, "may encourage the company to maximize stockholder value through a possible merger, sale of the company's assets, consolidation, business combination or a recapitalization or refinancing."

Hmm, I wonder what they mean by that. I'd really like to see them sell their crummier parks as there is no need for them, as i've said the only SF parks should be MM, GAdv, GAm, OT, OG, and maybe a couple more. While I don't really know how the smaller parks are real big assets (they could be reffering to sales?).

Or it could just mean nothing .

[planea380]

--delete--

[sfgam]

I just bought six flags stock a few months ago because i thought that it reached an all time low, and there was no where to go but up, and so far the stock hasn't done well, but if it used to be at 40 dollars, then sooner or later it should get back up there.

[Drkstarboard]

WOW. A walking Newspaper.

[Ron/Wolf]

Folks I really think this will be a major turning point for the chain. I just hope not another bad one. Get ready the Money Grubbers are coming and charm will be leaving, this is my fear, can we say Wesray?

[sixflagsguy5]

I think that WE will do good. I dont know about the other parks, but were good.

[w00dland]

Six Flags America, AKA Redskin Land.

[Virtua Tennis]

I think that WE will do good. I dont know about the other parks, but were good

If your reffering to GAm, they've always done well for SF.
I think GAdv's going to be the new flagship park in the next few years as they stated they see New Jersey as the biggest asset

[Chitown]

And why wouldn't they?(referring to SFGAdv). It surpasses SFMM in attendance year after year and is only seasonal.

SFMM pulling in 3 mill a year would be considered stellar to a seasonal park, but SFMM is year-round.

By the way it sounds, their Chicago and New Jersey parks are their main focus now.

[w00dland]

Why shouldn't they be? New Jersey dominates the market that it's in (it's really the only huge park around there, anything real close is in Pennsyvania.) and Chicago doesn't have any competition. Sounds like two of the biggest money makers to me.

[planea380]

The Gurnee area is one of the largest markets, and if you dominate it you will become a successfull park....The area was one of Disney's finallist locations but they didnt want to operate 6months of the year.