Theme Park Stocks Entertain and Temp Investors With News (FUN, SIX, SEAS & IFLM)

Theme park stocks Cedar Fair, L.P. (NYSE: FUN), Six Flags Entertainment Corp (NYSE: SIX), SeaWorld Entertainment Inc (NYSE: SEAS) and up and coming Independent Film Development Corporation (OTCMKTS: IFLM) have all been producing their share of news lately ranging from hot to neutral to cold for investors and traders alike – meaning it might be time to take a look at what the sector might have to offer:

Cedar Fair, L.P. Hits an All Time High After Earnings. On Thursday, shares of Cedar Fair, L.P. hit an all time high after the company reported earnings. Specifically, Cedar Fair, L.P. reported that revenue rose 7% to $592.1 million as revenue from admissions to the parks rose 6.3% to $339.7 million and revenue from food and merchandise bought at the parks rose 5.3% to $180.4 million and out-of-park revenues rose 8% to $58.7 million while average in-park guest per capita spending rose 7% to $45.73. In addition, Cedar Fair, L.P.'s net income rose 35% to $190.4 million plus the company raised its outlook for the full year above Wall Street expectations. Finally, Cedar Fair, L.P. announced a 12% cash distribution increase with the forward yield being 5.5% – meaning the stock has been producing more than just fun for investors.  

Is Six Flags Entertainment Corp Set to Bounce Back From an Accident + Earnings Miss? Late in October, Six Flags Entertainment Corp reported weaker than expected results due mainly to the fallout from a July roller-coaster death at a theme park in Texas. However, Wells Fargo noted that the fallout from the accident was limited to that particular park and they believe that previous growth drivers remain intact plus the company could look to relever in Q4 and use the proceeds to buy back shares. Moreover and last Thursday, Six Flags Entertainment Corp announced a 4.4% increase in its quarterly cash dividend from 45 cents to 47 cents per share for a forward dividend yield of around 4.90%. Nevertheless, Six Flags Entertainment Corp's technical chart is still trending down:

SeaWorld Entertainment Battles Bad Publicity Ahead of Earnings. SeaWorld Entertainment is scheduled to release its third quarter 2013 financial results after the market closes on Wednesday, November 13, but the company has had a negative spotlight cast upon it by an independent and activist orientated film. Specifically, the film Blackfish explores the accidental deaths of SeaWorld trainers and exposes the "dark side" of holding killer whales captive. The filmed premiered at the Sundance Film Festival back in January, but has since gone more mainstream with an airing on CNN back on October 24th plus its been the subject of several CNN news features – sparking debate about keeping whales in captivity. Blackfish isn't the only problem for SeaWorld Entertainment or for investors as I noted last summer, the stock has been particularly good for one key investor plus its also highly leveraged with the latest technical chart seeming to indicate that reality has set in for investors:

 

Independent Film Development Corporation Outlines Its Unique Theme Park Plans. Los Angeles based Independent Film Development Corporation, which intends to develop genre themed studio style resorts, has recently announced an exclusive broker agreement with Beverly Hills based Camden Realty Group (CRG) for assistance in finding and acquiring suitable properties for development nationwide with the company's first project being the "Hilltop Manor Theme Resort and Production Studios."

Independent Film Development Corporation's genre theme park and resort is planned for New York's Catskill Mountains and will be dedicated to the horror and science fiction genres of film and television with the company's management team describing it as a "place where people will be able to collectively celebrate things that go bump in the night." Current plans call for a luxurious 320 room 4 or 5 star hotel plus an old fashioned hedge maze; a lake with a "monster" living in it along with an island with castle ruins; and a number of rides having an "overall theme of the mysterious, the unexplained and the supernatural." Shares are also up 200% since last January.