Friday, October 3, 2008

Six Flags' Bad News

Six Flags has put out a press release addressing the fact that they are not in line with the New York Stock Exchanges' standard of a common stock that is being traded having a 30 day closing average price of above one dollar.

In a nutshell, the stock is now really really a junk one, and the stock exchange has rules that say the company has 6 months to fix the problem... or go away.

This doesn't effect the company's ability to operate, but it's never a good sign if a company is removed from a stock exchange.

CEO Mark Shapiro said the company is looking at several possible ways of fixing the problem, one of which being a reverse stock split. If they do a one-for-two reverse split that still only puts the price at $1.30 (from yesterday's price).

I'm not saying that the parks are in danger necessarily, but Six Flags as a company in it's current form doesn't look so hot right now. The parks are still viable and the right person could make money on them, so if all else fails someone will swoop in and buy them.