This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

California Legislation Aimed at SeaWorld

NEW YORK (TheStreet) -- SeaWorld Entertainment (SEAS - Get Report) saw its shares plummet last Friday on news of California legislation that could hurt the company. A legislator from the Hollywood/Malibu region of California proposed legislation that would forbid orca shows in the state. With SeaWorld San Diego one of 12 destinations owned by the parent company, the effects of this law would directly impact revenue and earnings.

Richard Bloom, of California's 50th district, proposed a bill that would end shows featuring captive marine animals. Destinations like SeaWorld would only be able to keep orcas in captivity for research, rescue and rehabilitation purposes. The bill also forbids these attractions from breeding in captivity or importing/exporting orcas. The orcas held in captivity would have to eventually be released back into the wild.

The bill is merely the latest step in the controversial practice of keeping orcas in captivity. The documentary Blackfish, which I discussed back in December, continues to put pressure on shares of SeaWorld. The movie discusses the dangers of holding whales in captivity and how it led to the death of SeaWorld trainer Dawn Brancheau in 2010. The movie, which gained viewers after being aired on CNN and Netflix ((NFLX)), also caused musicians to pull out of performances at the SeaWorld parks.

Shares of SeaWorld are up more than 17% in 2014 after reporting strong third quarter and preliminary full year earnings. In the third quarter, the company reported a 3% increase in revenue after seeing per user revenue increase. For the full year, the company sees revenue hitting a company record of $1.46 billion. The company cited strong performance from SeaWorld properties in San Diego and Orlando as key growth drivers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SEAS $19.46 -1.30%
AAPL $94.30 -0.92%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $230.86 -0.63%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,052.63 -10.74 -0.52%
NASDAQ 4,730.8550 -32.3690 -0.68%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs