Updating your Income stocks: Cedar Fair L.P., Snap-On Inc. and Newell Brands Inc.

Article Excerpt

CEDAR FAIR L.P. $33 (www.cedarfair.com) is now a hold. The partnership owns 11 amusement parks and five water parks (one of them indoor). It also operates hotels (2,300 rooms) and 600 luxury RV sites. It shut down its parks in mid-March due to COVID-19, which is why its revenue in the first quarter of 2020 fell 19.9%, to $53.64 million from $66.98 million a year earlier. Due to a writedown of its water parks, Cedar Fair losses worsened to $3.83 a unit from $1.49 (Note—it typically loses money in the first quarter when most of its parks are closed). As long as its parks remain closed, however, the partnership’s cash burn rate is between $30 million and $40 million a month. As a result, it has now suspended quarterly distributions of $0.935 a unit. SNAP-ON INC. $136 (www.snapon.com) is also a hold. The company makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages. In the three months ended March…