Six Flags Entertainment Corporation
) recently suffered a setback when a roller coaster at its Magic
Mountain amusement park derailed as the result of a tree branch
falling on the track. The front part of the roller coaster isolated
and dangled at about a 45 degree angle from the track.
The Ninja ride carried 22 people who continued to hang 20 to 30
feet above the ground for three to four hours. Reportedly, four
people received minor injuries. The ride would remain shut till the
accident is investigated.
Six Flags Entertainment Corp. is the world's largest amusement
park corporation with properties in Mexico, the U.S., and Canada.
The company maintains 18 properties throughout North America
including theme parks, thrill parks, water parks, and family
This is not the first time that a Six Flags roller coaster has
met with an accident. In Jul 2013, Six Flags in Arlington had to
shut down its Texas Giant roller coaster after a woman fell from
her seat and died. According to Ohio-based Center for Injury
Research and Policy at Nationwide Children's Hospital, between 1990
and 2010, more than 92,000 children were injured in amusement
ride-related incidents, which implies more than 4,000 injuries per
These events hurt the image of amusement parks. In fact, there
were posts on
) in which people expressed their apprehension over riding a roller
coaster again. Footfall at Six Flags' amusement parks may suffer as
a result of the accident.
However, the company continues to expand in emerging markets,
which are expected to grow two to three times faster than developed
nations like the U.S. This is expected to position the company well
despite the headwinds.
Six Flags currently has a Zacks Rank #3 (Hold). Some
better-ranked stocks in the sector include
Dover Motorsports Inc.
International Speedway Corp.
). Both these stocks carry a Zacks Rank #2 (Buy).
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