Explain sixs competitive strategy advantages and weaknesses

Reference no: EM133585586

Homework: Six Flags Entertainment Corporation (SIX) Case Study

Prior to completing this homework, read Chapters 7, 8, and 14 in the Dhandho Investor You may want to review Chapters 5 and 6 from the Dhandho Investor as well, assigned in Week 2, before beginning this homework. Then, read Chapters 3 and 4 in the Outsiders text.

In addition, read the following articles and resources:

1. Press release October 22, 2019: Record September Year-to-Date Attendance and Revenue at Six Flags
2. Press release October 24, 2019: Michael Spanos Appointed New President and Chief Executive Officer of Six Flags
3. Press release March 30, 2020: Extension of Park Closures Until at Last Mid-May Announced by Six Flags
4. Six Flags 2019 Annual Report
5. Six Flags 2020 Annual Report
6. Competitive Strategies in the U.S. Theme Park Industry: A Popular Media Perspective.

Six Flags is a regional theme park company with 27 parks located throughout the United States, Canada, and Mexico. In October of 2019, SIX, the company's ticker symbol, reported record attendance and revenues; and on October 24, 2019, SIX announced it had hired a new president and CEO, Michael Spanos.

For the 4 years ending December 31, 2019, the cumulative shareholder return on SIX stock was 0.44%. In contrast, for the same period, the S&P 500 cumulative return was 71.49% and the S&P Movies and Entertainment Index return was 47.78% (Six Flags, n.d.-b).

The SIX stock opened 2020 at $44.61 per share, and, in light of the COVID-19 pandemic, the stock hit a record low of $10.36 per share on March 18, 2020. The SIX stock price recovered to $34.10 per share by the end of 2020. SIX was profitable prior to the pandemic, but in 2020 reported a net loss of $423.38 million. Throughout 2020, SIX announced several debt restructurings to help it succeed through the pandemic.

You have been asked to evaluate SIX and present a report analyzing the investment opportunity in the company. Be sure to include relevant or scholarly sources in your report to support your conclusions.

In your report,

Question 1. Explain SIX's competitive strategy, advantages, and weaknesses.

Question 2. Analyze SIX's capital allocation changes during 2020.

Question 3. Analyze the changes in SIX's P/B ratio from 2016 through 2021.

Question 4. Analyze SIX's leadership strategy with respect to creating shareholder value throughout 2020 and 2021.

Question 5. Evaluate the investment opportunity in SIX stock as of September 30, 2021, using principles from the Dhandho Investor

Question 6. Justify your proposed investment decision.

Reference no: EM133585586

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