Six Flags: Will it amuse this year?

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Six Flags Inc. (NYSE:SIX) is just about set to enter its focus period.

That's because Wall Street will begin to turn its eyes to SIX to evaluate whether the company's capital investment, new efforts to attract families and improve the typical park attendee's experience are bearing fruit.

Revenue for Six Flags, the world's largest regional theme park operator engaged solely in the theme park business, is expected to increase about 9% to $1.1 billion in 2007, according to the Reuters consensus estimate.

in the months ahead Wall Street will scrutinize key metrics for park attendance, average day fares, and revenue per attendee. But equally significant will be channel checks that evaluate the overall consumer experience at SIX's parks. In short, Wall Street wants to see that families, not just teenagers, are attending in large numbers, that both the kids and parents are happy, and that families in particular come away from the day's experience feeling that they received a good entertainment value from SIX and that they'd visit the park(s) again.
SIX's stock price, which closed Friday at $6.13 down 2 cents, has meandered between $4.50 and $6.50 for the better part of a year, which is indicative of Wall Street's lack of a conclusion regarding the company's operations.

But as the warmer weather starts to arrive, outdoor activities will increase, and Wall Street will learn relatively quickly whether Six Flag's efforts have placed a smile on both kids', and investors' faces this year.

Investment Category: Six Flags is a high-risk stock not suitable for low-risk or moderate-risk investors. Investors who cannot tolerate 30%-50% price swings with SIX should not invest in this stock.

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Last updated: February 10, 2010: 02:11 AM

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