Six Flags (SIX) is one of the companies that was affected the most by the spread of COVID-19. There’s no doubt that this year will be one of the worst in Six Flags' history, as its parks were mostly closed in Q2 and only recently started to reopen.
Nevertheless, I’m bullish on the company. With $832 million in liquidity at the end of March, Six Flags will be able to stay afloat and wait for the demand to return later on. While its total debt stands at $2.4 billion, most of that will start to mature only in 2024, so there’s plenty of time to tackle the debt problem too. I believe that it will take a long time for a vaccine against COVID-19 to be approved, manufactured, and distributed at scale. However, the positive sentiment regarding the development of a vaccine will help Six Flags stock to gain momentum and push it out from the distressed territory in which it currently trades. For that reason, I decided to buy Six Flags stock and plan to hold it until the end of the year.