Snyders SIx Flags "sinking fast"

I was wondering that when he had the problem in NO with the press and the 6 flags down there wather he was going to cntinue to develop the chain or look to sell off the land ...50 million for what is probably in excess of 2 billion in real estate is a savey investment ....

I just dont get why some people want to see successful people fail ?

Redskins owner Dan Snyder had a little better year on the football field than as a businessman.



According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.


Maybe its a blessing??/????
wow... this is gonna get ugly.

Even with the marketcap down to 180 million, its still be a hefty tab to privatize the company. You'd think with 27 parks, the land alone and the scrap metal, liquidation of salvageable equipment would be worth 200+ mill.

You have to wonder what kind of liabilities they have though. There are all sorts of financing issues (i.e. debt in the form of loans and mortgages among) as well as legal liabilities (i.e. people choking on cotton candy while riding the coaster ans suing for $10 mill). And did he buy the company with pure cash or does he have debt he's paying off on that as well?

The land itself is probably worth over half a billion.

Yeah that's pretty much exactly why he bought it. He didn't care about the park business, the intrinsic value on the real estate alone made it a decent investment.

Yeah that's pretty much exactly why he bought it. He didn't care about the park business, the intrinsic value on the real estate alone made it a decent investment.
He could always sell out.

I just dont get why some people want to see successful people fail ?

It's the American Way. The only thing we love more than a rags-to-riches story is a tragic fall from grace.

this reminds me how pissed off I am that the cryboys are worth more money than us now because of their new stadium...

He could tear down a six flags and use that land to build us a new stadium, hell keep the rollercoasters for tailgaters!

Redskins owner Dan Snyder had a little better year on the football field than as a businessman.



According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.


Maybe its a blessing??/????

This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.

This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.

What's that supposed to mean?

This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.

so you just gave me a great idea, can you imagine if chris berman was the voice on the roller coasters that made all the announcements, then as you went into turns of loops he made all his little sound effects