$SIX Looks To Have Bottomed And Found Strong Support

$SIX looks to have found rock solid support at the $35 level. With many gaps to close overhead, $SIX looks to be a nice play, especially now that an activist investor has gotten involved.

Activist investor H Partners Management says it has engaged with the Six Flags Entertainment board after closely monitoring the recent developments with the theme park operator.

H Partners says the talks included the potential of a board rep.

H Partners holds a stake of 6.5% in Six Flags.

Among other highlights:

$SIX trades at just 14x next year's earnings.

$SIX is down 40% off its 52-week highs.

Average target price is $52 a share.

Six Flags Entertainment Corporation owns and operates regional theme and water parks under the Six Flags name. The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 25 parks, including 22 parks in the United States; 2 parks in Mexico; and 1 park in Montreal, Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas.

As always, trade with caution and use protective stops.

Good luck to all!