Six Flags Inc. (NYSE: SIX) disclosed in an SEC filing today that unless it can restructure its debt, it may have to file for bankruptcy.

"Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date," the company said.

The roller coasters at Six Flags (NASDAQ: SIX) are fun for the theme parks' patrons, but shareholders of Six Flags have experienced a ride more like The Tower of Terror, a simulated freefall thrill ride. The company reported its second quarter results on Friday, losing $41.8 million from continuing operations, compared with a loss of $39.1 million in the second quarter of 2006, as revenue increased 6%. The loss per share of $.50 was nearly double the consensus estimates.

Mark Shapiro, Six Flags President and CEO, commented: "Although our peak business period occurs in the third quarter, we witnessed encouraging results for the first six months, especially when you consider 4% fewer operating days and unprecedented rain in the state of Texas. The fact that in-park spending and guest satisfaction scores are at an all-time high indicates both the return of families to Six Flags and their approval of the makeover. We are in position for the long-term turnaround we envisioned for our shareholders."

But those shareholders apparently aren't buying it, as the shares shed another 16% on Friday to close at $3.90, after trading over $6 as recently as June. In 1999, the stock was above $30.

So is Six Flags a good deal, with its market cap of under $375 million? In many ways, the company is a lot like Trump Entertainment Resorts (NASDAQ: TRMP), whose shares have tanked after the company failed to find a buyer. Saddled with enormous debt loads (1.4 billion for Trump and 2.65 billion for Six Flags), you have to worry that these companies will be unlikely to make the capital investments necessary to stay relevant in competitive industries. The huge debt service requirements make it difficult for these companies to generate cash and while Six Flags does have a $275 million revolving credit facility, that's not that much considering that the company has lost $200 million in the past 6 months.

I would stay away from these stocks for now. The huge debt loads make them too speculative.

MAJOR PAPERS:

• Kohlberg Kravis Roberts & Co. is planning an initial public offering, following in the footsteps of arch rival Blackstone Group (NYSE: BX), reported the Wall Street Journal (subscription required).
  
• Archer-Daniel-Midland Company (NYSE: ADM) is expected to enter the sugar cane ethanol business in Brazil, including the possible purchase of Cosan, Brazil's largest ethanol producer, reported the Wall Street Journal.

OTHER PAPERS:

• British energy company BP plc (NYSE: BP) will agree to the demands of the Russian government to give up its stake in the $20B Kovykta gas project, reported the U.K. Times.
• From BusinessWeek's "Inside Wall Street" column:
• Bulls and bears argue over where it is time to own Deere and Company (NYSE: DE) stock, some see the stock hitting $150, some believe the party is over.
• Document Security Systems Inc (NYSE: DMC) has nine patented technologies to help protect documents and printed products from brand and security fakers, leading Brookhaven Capital Management to believe it will reach $50-a-share over the next two years.
• WBB Securities believes Cleveland BioLabs Inc (NASDAQ: CBLI) is likely by summer's end to get a U.S. Department of Defense contract for its radiation protection compound called Protectan or CBLB502.

WEBSITES:

• CNN.com reported that a 16-year-old girl had both of her feet severed in an accident on the free-fall ride "Superman Tower of Power" at Six Flags Inc's (NYSE: SIX) Kentucky Kingdom amusement park yesterday.

Daniel Snyder, the super entrepreneur and owner of the Redskins, always thinks big. So, when he took a piece of Six Flags (NYSE: SIX), it was only a matter of time until we saw some big bets.

This week, he did just that. Through his investment firm Red Zone Capital as well as Six Flags, he bought Dick Clark Productions for about $175 million.

OK, this may seem like taking a couple steps back. Isn't Dick Clark kind of passe?

That may be the case but his company has some compelling brands, such as "New Year's Rockin' Eve," The Golden Globe Awards, "So You Think You Can Dance," the American Music Awards and so on.

Basically, Six Flags can leverage these assets in terms of cool events, merchandising, and perhaps even attractions.

And, for $175 million, it does seem like a reasonable bet.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Stock futures are lower in early morning indicating to a similar start for the stock market ahead of some key economic data due to be released today.

At 8:30 a.m., before markets open, the Labor Department will report February's consumer price index. Economists forecast a 0.3% increase compared to a 0.2% increase in January. Ex-food and and energy, core CPI is expected to rise 0.2% after gaining 0.3% in the previous month. Investors will be watching this inflationary measure closely as the Fed meets to discuss interest rate policy next week. What's more, yesterday's PPI surprise is causing further concerns inflationary pressures are sill strong.

Despite PPI coming much higher than expected yesterday and other indication about mounting inflation (at the wholesale level) and slower economic growth, markets finished on a positive note. The reason, many speculate, has to do with several options and futures contracts expiring today bringing buyers into the market. Corporate M&A activity also helped strengthened stocks yesterday.

Other economic data will be reported today: February capacity utilization and industrial production figures will be released just before markets open. March consumer confidence is due at 10:00 a.m., after the open, and is expected to show a slight drop.

The dollar dropped to a three-months low against the euro ahead of the coming U.S. economic data that could further point to weakening U.S. economy. The dollar also lost ground against the yen and 12 other currencies.
After falling to near $57 a barrel, oil prices rose this morning.

In corporate news:

OMI Corp. (NYSE:OMN), operator of a fleet of oil tankers, may put itself up for sale. The company hired advisers to explore sale and its board is reviewing several strategic alternatives.

Nissan Motor Co. (NASDAQ:NSANY) CEO Carlos Ghosn would give up the duty of overseeing operations in the Americas. The automaker shuffles top management as it heads for its first annual profit decline in seven years.

Monday March 12

• Texas Instruments Incorporated (NYSE:TXN) mid-quarter update conference call at 5pm. Note that Stifel just upgraded Texas Instruments to Buy from Hold as they believe the mid-quarter update will show improving trends.

Tuesday March 13

• Goldman Sachs Group Inc. (NYSE:GS) to report Q4 earnings; conference call at 4:30pm.
• Qualcomm Incorporated (NASDAQ:QCOM) to hold annual shareholder meeting at 11:30am.
• PDUFA Date for GlaxoSmithKline plc ADR's (NYSE:GSK) Tykerb, a breast cancer drug.

Wednesday March 14

• Retailers Hot Topic Inc. (NASDAQ:HOTT) and Zumiez Inc (NASDAQ:ZUMZ) to report earnings. Hot Topic's Q4 conference call is at 4:30pm, Zumiez's Q4 conference call is at 5pm.
• PDUFA Date for Novartis AG ADS's (NYSE:NVS) Tekturna, a treatment for high blood pressure.

Thursday March 15

• Bayer AG ADS (NYSE:BAY) to report Q4 earnings; conference call at 6am.
• Six Flags Inc (NYSE:SIX) to report Q4 earnings; conference call at 4pm. Note that earlier this week, Cramer specified Six Flags as a stock he was bullish on during the "Lightning Round" of his Mad Money television show.

Friday March 16

• IMAX Corp (NASDAQ:IMAX) to report Q4 earnings; conference call at 8:30am.
• AnnTaylor Stores Corporation (NYSE:ANN) to report Q4 earnings; conference call at 8:30am.

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.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Six Flags (NYSE: SIX) is the top conservative investment idea for 2007 from Chris Mayer, editor of Capital & Crisis. The advisor notes, "Six Flags is a great brand name, and about 34 million people visited its amusement and water parks last year. And they all come and spend money.

"Dan Snyder, the whiz-bang executive who made billions with Snyder Communications, took control of the company last November. He's also the guy who bought the Washington Redskins. In the time he's owned the Redskins, profits have tripled, and it's now the most valuable property in the NFL.

"One of the first things he did was hire Mark Shapiro to run the show at Six Flags. Shapiro was the No. 2 guy at ESPN. So he knows a few things about marketing and building up a media asset. Since he's joined Six Flags, he's brought on a bunch of executives and operators from ESPN and Disney.

Monday December 11

• Hartford Financial (NYSE: HIG) to hold a 10am conference call regarding 2007 earnings guidance
• FCC to hold a hearing on Media Ownership at 1pm
• Texas Instruments (NYSE: TXN) to hold Q4 mid-quarter update at 5pm

Tuesday December 12

• Six Flags (NYSE: SIX) to hold mid-quarter update at 8:30am
• Goldman Sachs (NYSE: GS) to hold Q4 earnings conference call at 11am
• General Electric (NYSE: GE) to hold financial update conference call at 3pm

Wednesday December 13

• Dynegy (NYSE: DYN) to hold 2007 earnings and cash flow estimates webcast at 8am
• Pennsylvania Gaming Control Board to hold public hearing at 9am

Thursday December 14

• Bear Stearns (NYSE: BSC) to hold Q4 earnings conference call at 10am
• PDUFA Date for Novartis' (NYSE: NVS) Rasilez

Friday December 15

• PDUFA Date for Oscient Pharmaceuticals' (NASDAQ: OSCI) Factive

On his MAD MONEY show, Jim Cramer always knows how to throw the generally-accepted investing viewpoints for a loop (har har). Tonight he discussed a new perspective on roller coasters when he suggested that Six Flags, Inc. (NYSE:SIX) is a way to make money, as a real estate play instead of as an entertainment company.

On a recent visit he paid $147 for 3 people, but said you can get less with a crushed Coke can; he criticized the park, which operates 30 units in North America, saying that the lines were long and you don't get enough rides for the time.

With such poor service and the risk of thugs, his biggest concern was the risk of bankruptcy -- never a good thing for equity investors, who are paid dead last (and usually nothing) in an asset sale. He found some research that confirmed his fears out of Prudential, but then decided to think outside the box.

As a real estate play they could make a mint if they tore down their parks and sold off the land. Modest proposal? Perhaps.

Cramer evaluated the rating, and noted that even the bears think there is only $1 or $2 downside. He said that CRT Capital named this as a "Strong Buy" because the young CEO may get a grasp of it and the land values alone are huge. He said the theme park can be a theme park because of its real estate. He said the bad numbers are really bad, and thinks the $4 is the floor. He calls it a "2 down 6 up scenario", meaning it can only fall $2.00 and can go up as much as $6.00 from current levels.

[Photo Whatknot]