Shorting SeaWorld: The Blackfish Trade – SeaWorld Entertainment …

Shorting SeaWorld: The Blackfish Trade – SeaWorld Entertainment …

Summary

SeaWorld Entertainment is overvalued and has high operating leverage.

Company being heavily sold by insiders.

Controversy from Blackfish documentary catalyst to drive stock down.

SeaWorld Entertainment (SEAS) is continuing to suffer from the negative reaction to the documentary “Blackfish” which discusses the poor treatment of orcas in SeaWorld parks. The resulting negative sentiment and falling attendance within the park has resulted in Q1 2014 being SeaWorld’s worst quarter since its IPO. The company blames weather and a delayed Easter season, but as I explain in the video below, SeaWorld’s problems are structural and far deeper than that.

The video also covers the company’s overvaluation, how high operating leverage and debt makes the company risky, and how Blackfish serves as a negative catalyst for the stock.

Source:

Shorting SeaWorld: The Blackfish Trade

Disclosure: I am short SEAS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More…)

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Nicholas Pardini

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Contrarian, macro, hedge fund manager, emerging markets

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Shorting SeaWorld: The Blackfish Trade – SeaWorld Entertainment …

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