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Player Avatar TMFBigFrog (93.68) Submitted: 5/23/2008 12:04:39 PM : Outperform Start Price: $16.02 FUN Score: +179.61

Cedar Fair dramatically overpaid for Paramount's parks. The company's cash flow growth and dividend growth has been challenged since that acquistion.

Additionally the economy is going to heck in a handbasket, with the price of gas and food absolutely destroying everyone's disposable income. That depresses people's willingness to spend on optional expenses like amusement parks and the like.

That being said, Cedar Fair still has an 8+% yield and a growing (albeit slowly) distribution, the cash flow to support both its distribution and basic operations, and some incredibly strong parks. It may not light the world on fire this year, but I'm willing to believe that its management is working to realize the synergies of the Paramount acquistion. I also believe it will drive further efficiencies throughout its operations to keep costs in control.

The time to buy a strong company is when things look bleak. It may take a bit of patience, but I do believe Cedar Fair will ultimately emerge on top.

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