Since this article is more geared towards Dorney, I'll post it here although I'm sharing it for the Cedar Fair news.
With another holiday weekend in the books, the parent company of Dorney Park & Wildwater Kingdom continues to roll toward its seventh consecutive year of record results.
Cedar Fair Entertainment Co., of Sandusky, Ohio, on Wednesday announced preliminary net revenues through Monday of $1.04 billion, a 2 percent jump from $1.02 billion through Labor Day a year ago.
The growth, the company said, was driven by a 1 percent increase in attendance to 20.5 million visits, a 50-cent jump in average in-park guest per capita spending to $46.71 and a 5 percent increase in out-of-park revenues to $114 million.
What I really wanted to share was the quote below since I know there are some people here interested in stocks. While I am certainly no expert, I do dabble with stocks in a portfolio separate from my retirement.
While Cedar Fair is poised to exceed last year's net revenue of $1.24 billion, its stock has declined over the last two months.
After closing at a peak of $63.20 on July 18, the stock has steadily fallen since and closed at $58.64 Wednesday.
Cedar Fair's second-quarter results — while higher than last year — missed analyst expectations.
Ouimet said the slightly lower results were the result of a heat wave and stormy weather that hit many of Cedar Fair's parks toward the end of July, more so than a broader consumer trend.
The company has a little time left to prove it. About 40 percent of its revenue comes from August through year's end, and October is often the highest volume and most profitable month of the year.
Wall Street focuses more on the revenue. While I feel that Cedar Fair is a very strong company, stock analysts seem to focus primarily on quarterly revenue results exceeding expectations. Otherwise, stocks often drop or at best, stay steady.
If you are not trying to play 'day trader' (buying low/selling high in volume on the same day or in a very short period of time for a profit) but are looking to possibly gain a rate of return significantly higher than savings accounts, then going with what you are passionate about and know a lot more than analysts take into account, some amusement park stocks can be a good bet. Just remember to think like a businessman and not an enthusiast.
Based on what I know about the industry and follow every day, my portfolio would be over +20% if I hadn't taken a big gamble with SeaWorld. Once again, while I am no expert, as always, feel free to PM me if you have any questions. I am always happy to share any knowledge I have.
SourceEDIT: Of course, just after I posted the above I came across this article. I will have to keep a close eye on this:
http://www.bloomberg.com/news/articles/2016-09-06/world-s-largest-indoor-theme-park-developer-said-to-consider-ipo
