Shapiro Defends Six Flags (SIX)

Six Flags’ (SIX) Mark Shapiro has taken to the airwaves..

Here is a nut shell is Six Flags problem. In New England Shapiro competes against Lake Compounce, Story Land and Canobie Lake for family’s dollars. In a tightened spending environment, Six Flags by far is the lowest value for a dollar. With Six Flags, if you want to park within a mile or two of the park, the honor will cost you $25. For the other three, I can park by the front door for free. Once inside, the cost differentials continue. Even with his new ticket pricing he mentions in the video, he is far more expensive than the competition.

Shapiro can blame gas and the economy all he wants but the bottom line is Six Flags has been struggling with attendance for years. At least this excuse is better that last year when they blamed God. Yea, I know, Q1 attendance was up from last year but it was only because Easter came early this year.

Shapiro is upbeat in the appearance but one has to wonder, “when will the customer satisfaction surveys mentioned in every single release by the company actually going to show up as a profit?” Even a dramatic improvement such as a far lower loss would be good. Ideas? Anyone?

Last month I wondered if Six Flags was soon to be bankrupts. Now we have its debt ratings being lowered, a death at a park ans a director dumping shares.

Here is another opinion on the subject from Chicago.

One can now by three shares for less than the cost of a soda at the park….the soda is still a better deal

Disclosure (“none” means no position):None

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