> What is your opinion of investing in Cedar Fair (FUN)?

What is your opinion of investing in Cedar Fair (FUN)?

Posted at: 2014-12-05 
FUN is high yield because it's sold as a limited partnership. As I understand it, for tax reasons, a limited partnership has to pay a high proportion of its profits to its partners/shareholders. I'd say that it was a solid investment but I'd think that a seasonal business like theme parks are going to be affected by a) weather b)gas prices and c) minimum wages. None of these factors are controlled by Cedar Park. In other words, the theme park business is all about adding new attractions, opening the doors, and hoping the public comes.

DIS (Disney) has half the yield but has ESPN, cruise ships, and movies to go along with parks and resorts.

If Disneyland or Disneyworld doesn't bring them in then they have other ways of making money..and international business.

FUN isn't a bad business but it lacks the upward potential that DIS has.

It sounds like a fair investment, no pun intended.

1 acre= £1 Million.

No shortage of clientelle.

Sounds good to me.

6% yield - too good to be true?

They are in an oligopoly industry, I mean, there's never going to be another theme park built in America because all the land is saturated.

Seems like a solid industry to be in, people can go on vacations for cheap.

but common sense says: high yield = high risk.

There's no high yielding stock that outperforms the S & P 500 over the long run. No such thing. c'mon.

Your thoughts?