Dr Blunt
4 years ago
Re-Opening Tomorrow (Friday) !!!
SeaWorld Entertainment $SEAS in San Diego will reopen on a limited basis starting Friday as it offers outdoor animal exhibits and marine life animal presentations, according to a Monday statement.
The new experience, Zoo Days: Bayside BBQ & Brews, will be offered from Aug. 28 to Sept. 27. The park will implement cleaning and sanitizing, physical distancing, face covering requirements, and temperature screenings.
msmithgold
8 years ago
$SEAS Thesis Wrong and Exits at a Loss
Broyhill Asset Mgmt - Was Wrong and Exited at a Loss
Theme parks are mediocre businesses; they earn low returns on capital and pile on debt to juice equity returns for investors; that being said, they have attractive characteristics such that buying at the right price can be very profitable
Thought we bought SeaWorld at the right price
Initiated a position in August 2014 at what we believed was the point of maximum pessimism (backlash from Blackfish)
Investment thesis correctly identified company’s animal rights challenges as a temporary problem likely to be solved via the passage of time
Recognized that heightened competitive environment represented bigger risk
Incorrectly assumed that the unique experience that SeaWorld has successfully offered for decades would be enough to differentiate the parks from Disney and Universal
Every investment cycle sows the seeds for its own conclusion; excess spending reaches a level which is unsustainable, and industry participants eventually figure out that if they cut back on ridiculous levels of spending, profits quickly improve
Assumed this cycle would be no different
Disney and Universal were spending like drunken sailors and new attractions at SeaWorld failed to drive the rebound in attendance we expected
Two years seemed like a sufficient time horizon for SEAS to get its house in order
Even though we bought SEAS at a bargain price, heightened competitive environment gradually eroded margin of safety
Lost money on SEAS but believe our judgment was sound; identified the primary risk before getting involved and bought with a sufficient margin of safety which limited downside risk
Over time, odds like this should shake out in our favor; a collection of investments with similar payoff profiles should result in quite satisfactory long-term gains
Great summary of Broyhill Asset Management's Letter: https://investoralmanac.com/2017/02/28/broyhill-annual-letter-trump-activepassive-investing-seaworld/
starbuxsux
10 years ago
A dolphin with a prosthetic tail is good for Sea World? I don't get it...
The only movie metaphor anyone here should be using is "Free Willy"
That "jesture" would be monumental.
Just like national parks for land animals have been created so too can there be a national park for marine animals, free of oil tankers, and all that other crap, and right along some cruise liner routes or something. Think outside the box....
If Sea World has any hope of survival they need to improve the lives of they're animals while they still have them, otherwise this company is toast, and so is the stock.