Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, December 18, 2009

Article Excerpt

CEDAR FAIR L.P., $11.16, New York symbol FUN, jumped nearly 25% this week after the company accepted an $11.50-a-unit takeover offer from Apollo Global Management, a private equity firm. If Cedar Fair unitholders approve, the sale should close by April 2010. Cedar Fair owns 11 amusement parks, six outdoor water parks, one indoor water park and five hotels, mostly in the midwestern and northeastern U.S. The slow economy has hurt Cedar Fair’s earnings. As well, it recently suspended distributions to conserve cash for debt repayments. The units are currently trading about 3% below the offer. This indicates that investors don’t expect a higher offer. Cedar Fair is still a hold. WELLS FARGO & CO., $26.78, New York symbol WFC, is selling 489.9 million common shares at $25.00 each. The company will use the $12.2 billion from the sale to buy back the $25 billion of preferred shares it sold to the U.S. Treasury under the Troubled Asset Relief Program (TARP) last year. Repaying the…