Six Flags Entertainment Corporation (SIX) Case Study

Six Flags Entertainment Corporation (SIX) Case Study

Six Flags Entertainment Corporation (SIX) Case Study
Prior to completing this assignment, read Chapters 7, 8, and 14 in the Dhandho Investor You may want to review Chapters 5 and 6 from the Dhandho Investor as well, assigned in Week 2, before beginning this assignment. Then, read Chapters 3 and 4 in the Outsiders text.

In addition, read the following articles and resources:

Press release October 22, 2019: Record September Year-to-Date Attendance and Revenue at Six FlagsLinks to an external site.
Press release October 24, 2019: Michael Spanos Appointed New President and Chief Executive Officer of Six FlagsLinks to an external site.
Press release March 30, 2020: Extension of Park Closures Until at Last Mid-May Announced by Six FlagsLinks to an external site.
Six Flags 2019 Annual ReportLinks to an external site.
Six Flags 2020 Annual ReportLinks to an external site.
Competitive Strategies in the U.S. Theme Park Industry: A Popular Media PerspectiveLinks to an external site..
Six Flags is a regional theme park company with 27 parks located throughout the United States, Canada, and Mexico. In October of 2019, SIX, the company’s ticker symbol, reported record attendance and revenues; and on October 24, 2019, SIX announced it had hired a new president and CEO, Michael Spanos.

For the 4 years ending December 31, 2019, the cumulative return on SIX stock was 0.44%. In contrast, for the same period, the S&P 500 cumulative return was 71.49% and the S&P Movies and Entertainment Index return was 47.78% (Six Flags, n.d.-b).

The SIX stock opened 2020 at $44.61 per share, and, in light of the COVID-19 pandemic, the stock hit a record low of $10.36 per share on March 18, 2020. The SIX stock price recovered to $34.10 per share by the end of 2020. SIX was profitable prior to the pandemic, but in 2020 reported a net loss of $423.38 million. Throughout 2020, SIX announced several debt restructurings to help it succeed through the pandemic.

You have been asked to evaluate SIX and present a report analyzing the investment opportunity in the company. Be sure to include relevant or scholarly sources in your report to support your conclusions.

In your report,

Explain SIX’s, advantages, and weaknesses.
Analyze SIX’s capital allocation changes during 2020.
Analyze the changes in SIX’s P/B ratio from 2016 through 2021.
Analyze SIX’s leadership strategy with respect to creating shareholder value throughout 2020 and 2021.
Evaluate the investment opportunity in SIX stock as of September 30, 2021, using principles from the Dhandho Investor
Justify your proposed investment decision.
The Six Flags Entertainment Corporation (SIX) Case Study paper,

Must be double-spaced four to five pages in length (not including title and references pages) and formatted according to APA StyleLinks to an external site. as outlined in the Writing Center’s APA Formatting for Microsoft WordLinks to an external site. resource.
Must include a separate title page with the following:
Title of paper in bold font
Space should appear between the title and the rest of the information on the title page.
Student’s name
Name of institution
Course name and number
Instructor’s name
Due date
Must use at least two scholarly or credible sources in addition to the course text
Reference
Pabrai, M. (2007). The Dhandho investor: The low-risk value method to high returns. Wiley.

Chapter 7: Dhandho 102: Invest in Simple Businesses
Chapter 8: Dhandho 201: Invest in Distressed Businesses in Distressed Industries
Chapter 14: Dhandho 403: Invest in the Copycats Rather Than the Innovators
Thorndike, W. N., Jr. (2012). The outsiders: Eight unconventional CEOs and their radically rational blueprint for success. Harvard Business Review Press.

Chapter 3: The Turnaround: Bill Anders and General Dynamics
Chapter 4: Value Creation in a Fast-Moving Stream: Value Creation in a Fast-Moving Stream: John Malone and TCI
Paper Format: APA

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