Accidents And Investing In Six Flags

I guess it's fitting that the first individual stock I ever purchased was Six Flags. When I think Six Flags, I think Roller Coasters. And that's been my experience as a Six Flags shareholder. I bought around $6 last year for my IRA.

So when I read about an accident at one of the parks, it's not just a sad story because someone I don't know got hurt (or worse) but it sucks because it causes the price of the stock to drop. It's also awkward because it raises the question "Does this drop in the price present a buying opportunity?" I mean, in the latest story, the person jumped two fences (the fences are there for a reason) and because he was in an area he wasn't supposed to be, he met an untimely end. I wasn't there, but from all accounts, it appears that Six Flags was not at fault. Understandably, the market reacted negatively to the news and people decided they needed to sell.

But, if my assumption is correct that the company was not at fault, then the market will see the current price ($1.15) as a buying opportunity.

As with all companies, there are other factors that affect the share price with Six Flags, so I'm trying to decide if I should pick up more shares at this lower price.

If I'm wrong, then Six Flags will just continue to fall and eventually collapse. So it's a classic dilemma - the price did something which either means it will keep going in that direction or go in the other direction. I dunno.