I agree with you only to the extent that Raynor and his hedge fund did indeed rescue unitholders from a very bad deal that former management negotiated in the shadows. At one point, he and his hedge fund held fully 18% of outstanding units. I was skeptical of Raynor's intentions at the time due to the shell game he was playing to circumvent clear SEC reporting requirements and obfuscate his true investment in the company. My concerns were confirmed when he began making untimely demands of the management team that were clearly conducive to his objectives at the expense of the company and it's unitholders. The company's poison-pill amendment was the only thing that prevented him from taking control of the company and running it into the ground.
As I recall the stock actually hit the $6.50 level at the depth of the financial liquidity crisis. But I was instead snapping up Fifth Third and Manitowoc stock at even more depressed levels and still hold a lot of those shares at 10x plus gains. The old BOD should have been taken to the wood shed for recommending a sale at $11.50 a share. That deal was just plain crazy and Geoff Raynor should have been given a gold-plated lifetime pass to the front of the line for Millennium Force for saving the unitholders behinds from that deal.
And bankruptcy is a scenario where one loses everything because it was more important to recieve something instead of giving it up to help save the company.
I don't disagree that a significant risk was taken by the management to acquire Paramount in 2004 for which they would be responsible for the consequences. But you and your senior citizen investors fared much better in the end than I did, because I sold my stake in the low teens when the loan covenants were in violation. At that time it appeared the only way to avoid bakruptcy was an $11.50 buy out.
I am not complaining because I am responsible for my own judgements and actions and I accept the consequences of those. And congratulations to those who had the fortitude to ride it out to be richly rewarded by the soaring stock price and reinstated dividends in the years afterwards. You and your senior citizens have nothing to complain about.
Entitlement is a scenario when one receives something and offers NOTHING IN RETURN.
These senior citizens have made an investment in the company. They have "skin" in the "game" They have taken a risk. THEY HAVE COMMITTED THEIR PERSONAL RESOURCES IN THIS COMPANY.Their distributions are NOT ENTITLEMENTS!!!
And yes, management has a fiduciary responsibility to MANAGE AND PROTECT THEIR INVESTMENTS. Prior management by loading up on debt for ill fated ventures FAILED THEM!!!!!!!!!!!!!!!!!!! The small investor gets screwed and the prior management team disappears under their "golden parachutes.
Aren't these severance packages ENTITLEMENTS AS WELL?????????
I don't believe he had several aliases, no other negative poster at the time had a writing style that was similar to his. He probably would have been right in the end if interest rates didn't drop to unprecedented lows for years on end. This kept the company's debt service from consuming more than the cash flow until debt levels came down. The lack of performance due to reduced capex he also predicted never occurred, and FUN's continued excellent operation in the past several years has provided the means for resuming the distribution and continued debt reduction.
You are correct, millennium. Solvency of the entire company was much more important than the entitlement of a few senior citizens dependent upon the distribution income. These entitled individuals, and every other unitholder, would have lost it all had FUN not been able to service its debt. And by conserving cash by suspending/lowering distributions, along with continued spotless operation and an unheard of era of rock bottom interest rates, the company was able to emerge afterwards in pretty good shape.
It is true that Kinzel is a turncoat who tried to sell the company out from under unitholders for a pittance while he was simultaneously going to ride off in the sunset still running the company but without us.. He should NEVER have been allowed a seat on the current BOD. Yes the subsequent hedge fund was absolutely critical in saving unitholders behinds, but the unheralded savior is the Federal Reserve whose engineering of ever lower interest rates allowed FUN to squeeze through a very tight situation which otherwise could have been dire. Companies that carry excessive amounts of debt put themselves at great risk should interest rates move higher over the long term as opposed to an interest rate environment in which rates have been trending consistently downward over the past 3 decades.
Glad to see things work out for FUN and its unitholders. It has always been a very solid business that generates gobs of free cash flow. It is a shame that under Kinzel debt reached such a high level tthat it threatened such an otherwise strong business.
Yes, I recall several years ago prior to when the Texas Hedge fund intervened to protect
unit holders interests against what Kinzel tried to pull off. This board was a very spirited site.
There were several high spirited posters here as FUN's fate was up in the air.......
With the improvement in the upper Midwest economy & the new FUN CEO, this firm has
been a real success story for those who were willing to take appropriate risks to hold or buy
FUN as the changes were evolving......
Looks like FUN is upping the pay out another 5 cents next distribution ........whoever
found the current CEO, should be thanked by all current FUN unitholders.
To all the FUN holders who have been invested since 2009/2010, congratulations
for your prudent patience and rewarding investment returns.
I couldn't handle the heat in the FUN kitchen in 2009/2010 and never pulled the trigger
for shares at $ 9 in Dec 2009.......wish I had. But I do remember reading the FUN
Yahoo message board on a daily basis.
Nice 5.8% yield at this price. Great sleeper stock for a push back to $53 next summer. I have a place for this in my portfolio. Nice yield with good upside is tough to find.
I would argue that the company would have been forced to file for bankruptcy if it had not proactively suspended the distribution when it did. Had that happened, you would have lost your entire investment in addition to all subsequent distributions. Cedar Fair is an exceptionally well run company. That is one of the primary reasons I have continuously held the stock since 1997. As for the LeBron ride-naming scheme: my understanding is that Ouimet will follow-through on his promise if LeBron formally requests it.
Sorry about the misstatement you referenced in the second sentence..
But if the company had maintained .48 oer share dividend, a shareholder would have received more cash from 11/16/09 till today then what they have currently enjoyed.
Nonetheless, kudos again to current management.
Still not addressed? the naming of one of the roller coasters after Lebron James.
A few of your statements are factually incorrect. First, the company paid a $0.25/unit distribution on 11/16/2009, then suspended it until it resumed that distribution on 12/15/2010. Second, the company is presently paying a $0.70/unit quarterly distribution, constituting a 46% increase over the $0.48/unit quarterly legacy distribution you referenced.
He was quite a prolific poster on this board under several aliases while Cedar Fair was in turmoil during the financial crisis. Three events conspired to definitively undermine his credibility. First, the company never filed for bankruptcy as he warned it would. Second, #$%$ Kinzel (for whom he had boundless unwarranted disdain) retired, leaving him with no easy scapegoat to justify his logic. Finally, the company's stock price continued to rebound contrary to his warnings of the converse. Once reality began making a parody of his dire predictions, he predictably stopped embarrassing himself.
Let's hope that this management team does not make the same mistakes as prior management.
Hopefully management understands who their shareholders are. Many are individuals depending on the dividends received for their day to day expenses. This is one operation where income is perhaps of equal importance to growth.
Granted the recession that begin in December of 2007 created great destruction in all sectors of the economy. Amusement Parks included. So it was probably inevitable that some dividend cuts were in order.
But making reckless investments such as Geaua Lake in Aurora Ohio a them park close to their home base in Sandusky, primarily on leveraged money, and closing the facility a short time later would be one example.
It is good to see that the current unitholders are recovering from the almost 50% cut in the dividend
management initiated in 2009 and the ZERO distributions paid from March 2010 till March 2011. Full recovery of the .48 per share dividend that was last paid in Feb 2009 has not yet occured (assuming 4 quarters paid at .48) but kudos to current management for making restitution to the so many of our senior citizens who hold this security and live off the dividend income currently being paid..
Finally, are they going to name a roller coaster after Lebron James, now that he is back in Cleveland?
Any long time posters to this message board remember the poster here named non_vacuous?
Any word as to what ever happened to him? After being such a frequent poster here for years he has dissappeaed it seems? Or is ge posting under a different name these days?
Any help on what happened appreciated.