Trade: Cedar Fair (FUN)

Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

While I haven't shared a detailed overview of the stock yet, my eyes have been on Cedar Fair for some time now.  As of today, I bought about half of my desired position in the stock at a price of $55.80.  This puts a stock that has strong cash flow, has growth through good and bad financial times in the US, primarily domestic sources of income and over a 5.3% dividend yield, I found the stock hard to pass up.  That's not to say the stock is fool proof.  The stock has pulled back into the low 55 range recently and I'm not convinced the stock is done going down yet.  The yield does provide support, but I am concerned regarding the impacts of the California drought on 3 of their theme/water parks which are located in highly populated regions and allow them to likely be top grossing parks.  If water restrictions do impact these parks, and thus profit streams, the dividend payout could be at risk.  Cedar Fair will be announcing first quarter results at the end of the month and will be key to ongoing information that could impact the stock.  Last year the stock suffered a strong decline over the summer and there's nothing saying it couldn't happen again based on my drought theory.  That being said, the stock seems to be finding support around this price as it bounces on the 50-day SMA.