Daniel Snyder's Red Zone, which until recently owned 11% of the troubled theme park operator announced in an SEC filing that it is distributing 100% of its shares to investors so they may do with them as they wish. Translation? Investors have grown tired of watching the $49 million dollar investment dwindle to $35 million with no hopes of it turning around anytime soon want to cash out.
Shares, currently sitting at $3.22 are over 50% off their 52 week high levels set in early June. Six flags has blamed the weather, rising expenses and just about everything else except the Iraq War for it misfortunes when the reality of the situation is that when compared to the other them parks around the nation, Six Flags is by far the worst value proposition for a family. That being said, this is the reason attendance has been static at three year low levels this summer despite managements efforts to cram more rides into static spaces.
I said it in August and was reviled by Six Flags fans, and I can only guess shareholders, that shares are dead money with no chance of a rebound anytime in the near future. When the largest shareholders closest to the operations start cashing out for losses, I can only surmise they feel the same way. I guess you could even take it a step further and figure they actually feel there is more downside risk that anything else and I think they would be right.