3. Six Flags (SIX) owns regional theme parks in North America. It filed for bankruptcy in 2009 and successfully exited in 2010. Based in Grand Prairie, Texas, Six Flags has enjoyed an 87% stock-price jump since June. Shares recorded a 52-week high yesterday, but then fell, posting a loss for the day.
Of equity researchers following Six Flags, all six advocate buying its stock. Miller Tabak forecasts a rise to $72. Oppenheimer & Co. expects a rise to $70. Six Flags has a market value of $1.9 billion. Management announced a stock repurchase program in February.The company's fourth-quarter sales grew 20% to $122 million and EBITDA climbed into positive territory, to $22 million, helped by stronger in-park sales, admission ticket sales and sponsorship fees as well as a drop in cash operating costs.Six Flags increased attendance 19% in the quarter. Still, it remained unprofitable on a GAAP basis, with a $95 million loss, equal to $3.38 a share, for the fourth quarter. Its balance sheet continues to improve. Six Flags held $187 million of cash at quarter's end and $971 million of debt. Debt decreased by 60%.
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