When asked about current market conditions, Ouimet said there are extreme weather events every year and they don't have a sizable impact on the company's profitability. A decline in gasoline prices, however, does make a difference as Mom and Dad are likely to spend a little more at the park if the drive to and from costs a little less.
Ouimet said Cedar Fair is always looking for acquisitions, but noted that great opportunities are harder to find. There have been no new parks built in the past three decades mainly because of the costs involved and the fact that the market has been absorbed by existing parks.
Finally, when asked about the current season, Ouimet mentioned that season ticket sales are up over last year and many of the company's parks are at record levels of ticket sales. He said driving to a local amusement park is far simpler than traveling by air, and that trend won't be changing anytime soon.
Cramer continued his recommendation of Cedar Fair saying the company has a lot more upside to come.
Beyond the Business SectionSometimes the best investment ideas don't come from the business section, Cramer told viewers. Take Alkermes (ALKS), a drug company whose drug Vivitrol is changing the way prescription drug abuse is treated in our country. Citing a recent article in the New York Times, prescription drug abuse is a problem that needs to "urgently be solved," as some 54% of all overdose deaths are now attributed to painkillers and not traditional illegal narcotics. Enter Vivitrol, a drug that blocks the receptors in the brain that respond to opiates, rendering patients unable to get high. Better still, Vivitrol is only needed once a month. Cramer said this drug is a huge leap forward from traditional treatments that merely replace dangerous opiates with less dangerous ones and require daily doses. Of the estimated 1.6 million people addicted to opiates, nearly 75% of them will seek treatment eventually, making the market opportunity for Alkermes a sizable one. While critics cite the high cost of the drug as a major drawback, recent state government reports has found that when considering the total cost of treating an addicted patient, the cost of Vivitrol actually saves money.
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