Cedar Fair is a master limited partnership that operates amusement parks, the most famous being Cedar Point in Sandusky, OH. The company has three sources of revenue: tickets, food & games, and hotels. There is a recession going on in this country and it has especially hit the Midwest, where the company's strength lies. Same park sales inched up 4% year over year. Tapped out consumers won't be ponying up for funnel cake and cotton candy to the same extent as past summers. In their most recent 10-Q, they admit that their costs are pretty much fixed. You do the math.
The massive 7.9% yield is enticing, but don't go for it unless you're just looking for income and not capital appreciation. This is an MLP. All of them have nice yields.
Don't buy this stock unless you think that we're not in a recession or have gotten through the worst of one.
$23.47 (05/21/08)
