Six Flags Entertainment Corp (Symbol SIX), might be one of the best short positions available in today’s market. I’m sure these words would make Mr. Six sick to his stomach.

The Facts

  • Six Flags’ Chapter 11 bankruptcy in August of 2009
  • Six Flags gave up 92% control to it’s lenders for canceling its debt to lenders
  • Was only profitable 1 out of the 4 last years and that was to a negative balance in “unusual expenses” for the year.
  • Overall Revenues have not shown many gains at all in the last 4 years.
  • The stock has more than tripled since June 2010, with very little fundamentals to actually support it.
  • The P/E is 855.18

The only real pro I can see in this stock is that with the forgiving of debt, the company has a very small amount of debt in comparison to assets. Because of this very little debt, the overall earnings per share for the last quarter on record looks fairly strong, but even if that pace keeps up for the entire year, we are still talking 80-90 P/E for this stock.

I have read analysts reports (link) that talk about all of the potential and positive trends, but honestly I just don’t see why I wouldn’t want to short this stock, other than the fact that option chains are not available for Jan 2014. If these options are released anytime short, you can be certain I will be considering throwing a small portion of my portfolio (I would guess 5%) into a leveraged short position on Symbol SIX.

Until they, let the hype continue and I pray the stock hits $60+ a share despite all logic, but who said the stock market was logical anyways?

Six Flags Symbol SIX

Short Six Flags

Six Flags Entertainment Corp

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Filed under: InvestingOptionsPersonal Portfolio Update

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