In addition, read the following articles and resources:
Press release October 22, 2019: Record September Year-to-Date Attendance and Revenue at Six Flags
https://investors.sixflags.com/news-and-events/press-releases/2019/10-22-2019-210441595
Press release October 24, 2019: Michael Spanos Appointed New President and Chief Executive Officer of Six Flags https://investors.sixflags.com/news-and-events/press-releases/2019/10-24-2019-211409223
Press release March 30, 2020: Extension of Park Closures Until at Last Mid-May Announced by Six Flags https://investors.sixflags.com/news-and-events/press-releases/2020/03-30-2020-161511960
Six Flags 2019 Annual Report https://investors.sixflags.com/~/media/Files/S/Sixflags-IR-V2/documents/annual-reports/six-2019-annual-report-v3.pdf
Six Flags 2020 Annual Report https://investors.sixflags.com/~/media/Files/S/Sixflags-IR-V2/documents/annual-reports/nc-10020462-x1-six-flags-10k-e-book-proof-v3-2020-smaller.pdf
Competitive Strategies in the U.S. Theme Park Industry: A Popular Media Perspective. https://www.proquest.com/scholarly-journals/competitive-strategies-us-theme-park-industry/docview/2105057678/se-2?accountid=32521
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 shareholder 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 competitive strategy, 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 five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA Styleas outlined in the Writing Center’s APA Formatting for Microsoft Word resource.
Must utilize academic voice. See the Academic Voice resource for additional guidance.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
For assistance on writing Introductions & Conclusions and Writing a Thesis Statement, refer to the Writing Center resources.
Must use at least two scholarly or credible sources in addition to the course text.
