Market Overview

Six Flags CEO Explains Why The Stock 'Doesn't Reflect The True Value'

Six Flags CEO Explains Why The Stock 'Doesn't Reflect The True Value'

Six Flags Entertainment Corp (NYSE: SIX), the theme park operator that occupies around 4,500 acres of land across North America, has seen its stock fall more than 10 percent since the start of 2017 and notable weakness since its earnings report in July.

The company's recently-appointed CEO Jim Reid-Anderson was given the opportunity to reassure investors and attract new ones in an interview with CNBC's Jim Cramer.

Looking to lead by example, the executive himself bought $3 million worth of Six Flags' stock because the stock price "doesn't reflect the true value" of the company. Six Flags' stock is also traditionally a poor performer during the third quarter but at current levels offers a 5.1 percent dividend yield which is an industry best.

Beyond any short-term weakness, Six Flags is positioned for long-term growth, the executive continued. Most important is that the theme park sector is a recurring revenue industry that is very stable — even during economic downturns. Also, competition is scarce as new parks can cost anywhere from $500 million to $700 million, which implies small start-ups are unlikely to be a threat.

"We're the best brand," Reid-Anderson emphasized. "We're the most famous brand. If you think about regional theme parks, there's no better brand. And it's truly a global brand."

Bottom line, Six Flags' stock is an "opportunity just staring you right in the face" that is hard to beat.

Related Links:

3 Amusement Park Stocks Could Be Worth The Price Of Admission

The Best Amusement Parks for Families in 2017


Image Credit: By Loadmaster (David R. Tribble)This image was made by Loadmaster (David R. Tribble)Email the author: David R. TribbleAlso see my personal gallery at Google Photos - Own work, CC BY-SA 3.0, via Wikimedia Commons

Posted-In: Amusement Park CNBC Jim Reid Anderson Jim Reid-Anderson Mad MoneyTravel Media General Best of Benzinga


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