If you are looking for clues to tell you which stocks have a good chance of increasing in value, you might want to consider watching what insiders are doing. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.
U.S. Gold (UXG) topped the insider-buying charts for the week ending March 4 as insiders snapped up 3,067,000 shares of company stock at a market value of $19,935,500. During the past six months, insiders have increased their overall holdings in the company by 30.97% and now own 21.13% of UXG stock.
If you are looking for clues telling you which stocks have a good chance of increasing in value, you might want consider watching what insiders are doing. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.
American Eagle Outfitters Inc. (AEO) topped the insider-buying charts for the week ending July 9th as insiders snapped up 500,000 shares of company stock at a market value of $6,790,000. During the past six months, insiders have increased their overall holdings in the company by 3.91% and now own 8.30% of AEO stock.
TheStreet.com's Jim Cramer says this isn't a cyclical story -- the company's many drivers can pick up any slack in one division.
Disney's (DIS) (Cramer's Take) an odd animal. Until these last few months, it always seemed to be measured by what its worst division at the time was doing. If ESPN was going great but theme park attendance was going down, people would sell it. If theme parks were holding up but broadcast advertising had weakened, investors would jump ship. If the owned and operated stations did well and the company delivered a bunch of hit shows, but the movie lineup bombed, people would dump the stock down to 12 or 13 multiple status, instead of the premium multiple is used to trade to.
The future investment stars are already with us. The NYSE Financial Future Challenge, operated by the NYSE Foundation, By Kids for Kids, K12 Inc. and the United Investors Association, is in full swing, with five finalists just identified. To reach this level, the participants had to develop a new product, idea or process that would "excite, educate and motivate their peers" to become interested in the financial marketplace. The eventual winner lurks within this subset and will receive a $2,500 prize -- a great way to get that portfolio started. And, he or she will be feted at a closing bell ceremony at the NYSE (NYX) on January 11, 2010.
The finalists presented a variety of ideas which are sure to generate some buzz. Kelsey Foss, a 12-year-old from Mountainville, NY, proposed a new television show, "Stock Market Tycoon Idol," which would harness the popularity of reality TV while amping up the content. The program would involve the journeys of 10 kids as they seek to make money or lose it, with the possibility of becoming virtual millionaires along the way. The show would be set at a mock NYSE studio on Wall Street, and exports would be brought out to mentor the contestants. The reality TV reach would help engage a younger audience.
Over the weekend, Six Flags Inc. (OTC: SIXF) announced it was filing for Chapter 11 bankruptcy (cue sad-trombone noise here). The company was saddled with $2.4 billion in debt and is taking this opportunity for a fresh start. None of the company's 20 parks -- located throughout North America -- will be closed. All Six Flags employees still have jobs, as well, so potential patrons should not feel as though corners are being cut.
Six Flags spokeswoman Sandra Daniels told the press that "This restructuring will have no impact on families who come out to our parks."
Earlier this month on DailyFinance, Bruce Watson wrote about Six Flags as a company on the brink: "Even if the company must declare bankruptcy, CEO Mark Shapiro says its daily operations will not be affected and characterizes a possible reorganization as a 'back-of-the-house issue.' Still, the company is keeping its seat belt fastened for more thrills and chills."
Today the company did file for bankruptcy with a so-called prepackaged filing. The reorganization plan has the unanimous support of the major lenders and the company hopes to re-emerge quickly. There don't appear to be any plans to close parks as a result of the filing.
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.
This post is part of our Ads Gone Bad series. Share your thoughts and memories of this ad in the comments, and be sure to check out our other posts on marketing gone wrong.
Thanks to our unfortunate history with slavery and the subsequent economic slavery imposed on minority Americans, we as a nation are very sensitive to charges of racism. So sensitive, in fact, that advertisers are often accused of such transgressions for the slightest intimation. Six Flags (NYSE: SIX), the amusement park chain, found this out recently.
The park created what I thought was a clever series of ads contrasting the humdrum routine of ordinary life with the thrills to be found at a Six Flags park. For example, one ad showed a lumpy teen attempting to dance, another a chortling woman teasing her cat with a laser pointer, both compared to gleeful coaster riders at Six Flags.
Investors/readers have probably already heard all of the bad jokes regarding Six Flags.
"Things are so bad at Six Flags, it's now called Three Flags."
"The only thing rising at Six Flags is the rollercoaster."
"A contest offered a vacation prize. First Prize: a day at Six Flags. Second Prize: two days at Six Flags."
O.K., that last one was borrowed from arguably the greatest comedian of all time, Groucho Marx, but you get the point: times are tough for Six Flags (NYSE: SIX).
Six Flags has more than $2.4 billion in debt, hasn't posted a profit in years, and has a big hurdle next summer: a $288 million payment to preferred shareholders, The Wall Street Journal reported (subscription required). Six Flags' stock closed Friday down 10 cents to $1.02.
Attendance, down 3% in Q2, is expected to "decline by at least that percentage, or come in even lower" for the year stock analyst C. Leonard Bauer told BloggingStocks, adding that it's not an elaborate mystery concerning why Six Flags is becoming less of a destination of significance.
With a turn of the calendar page, we drift into the middle portion of the current quarter, but the earnings season rolls on. Among the many companies scheduled to report quarterly results this coming week are Time Warner Inc. (NYSE: TWX), Cisco Systems Inc. (NASDAQ: CSCO), News Corp. (NYSE: NWS), and Whole Foods Market International (NASDAQ: WFMI). Let's take a look at which companies Wall Street analysts are expecting to be among the top earnings gainers and decliners this week.
Analysts surveyed by Thomson Financial expect the following to report strong earnings growth when compared to the same period of the previous year.
The previous quarter was tough for amusement park operator Six Flags Inc. (NYSE: SIX), which reported a narrowed fourth-quarter loss, as well as for Vail Resorts Inc. (NYSE: MTN), the nation's largest ski resort operator, which said that its fiscal second-quarter profits were affected by a lack of snowfall early in the season.
Six Flags reported a fourth-quarter loss of $132.4 million, or $1.39 per share, compared with a loss of $195.2 million, or $2.07 per share, a year earlier, and a loss of 59 cents expected by analysts surveyed by Thomson Financial. However, the results for the prior-year period included an $89.2 million, or 95 cents per share, loss from discontinued operations.
Revenue for the period that ended December 31 rose 8% to $112.1 million, as park attendance edged up 4% to 2.8 million.
Six Flags reported a full-year loss of $275.1 million, or $2.90 per share, compared with a loss of $327.6 million, or $3.48 per share, in the previous year, and a loss of $2.92 expected by analysts. Annual revenue increased 3% to $972.8 million.
Shares of Six Flags dropped 20 cents, or about 12%, to $1.62 in morning trading.
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.
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.
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.
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.
Tax Reform in This Election Year: It's Not Likely
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
If you are looking for clues to tell you which stocks have a good chance of increasing in value, you might want to consider watching what insiders are doing. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.
If you are looking for clues telling you which stocks have a good chance of increasing in value, you might want consider watching what insiders are doing. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.
The future investment stars are already with us. The 
Over the weekend, 
This post is part of our 
With a turn of the calendar page, we drift into the middle portion of the current quarter, but the earnings season rolls on. Among the many companies scheduled to report quarterly results this coming week are 
.gif){kind=logo}
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
