Six Flags, Inc. (NYSE: SIX) shares plunged 44% at the end of trading on Wednesday July 16! The move occurred mostly because of expectations for the company's financial performance to worsen due to reduced consumer spending and increasing fuel prices. Six Flags is a provider of amusement and entertainment services through owned and operated regional theme parks. Their business is highly seasonal, thus a bad season can prove to be very costly for Six Flags.
Despite the bad forecast, the company is doing everything it can to make money. They have acquired several new roller coasters as well as decreased ticket prices, which is all in hope of attracting more visitors.
Six Flags only makes money during the "hot" season and incurs constant losses over the remaining part of the year, so the financial results of second and third quarters are the most important. On July 16, 2008, Six Flags announced they will be releasing quarterly results on August 4, 2008.
Even if as expected, they report negative results for the quarter, the shares would probably decline further. The company's stock has hit an all time low and is currently trading under $1.00 which means that Six Flags might be having trouble with its listing requirements on the NYSE, if things do not improve soon.
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