SeaWorld Stock Price Still Down

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SeaWorld Stock Price Still Down

It’s a tough road to recovery for SeaWorld.

SeaWorld’s Horrible Years are not over

New CEO, Joel Manby, who took over from Jim Atchison in January 2015, warned that it would be a bumpy road to recovery.

He was absolutely right.

Read the article below. Why has Manby suddenly turned on the charm and become so enthusiastic of the prospects of running a whale theme park without any live whales?

SeaWorld new CEO embraces change, oozes confidence

The stock price went up when he announced on 18 March 2016 that SeaWorld would stop their orca breeding program. The timing was very suspect as I saw videos and news of Tilikum being very sick and even dying, on 10 March 2016. Tilikum being the main contributor of killer whale sperm.

Did people believe that SeaWorld has had a change of heart?

Some did, but others like myself didn’t. It was just a PR trick to get their stock up. Give the people some fishy promise to keep them happy.

Orcas and dolphins at SeaWorld must keep working for their dead and stale fish.

The 2005 movie `Hitchhiker’s Guide to the Galaxy’ had a brilliant satirical song about SeaWorld, “So long and thanks for all the fish.”

In response to Manby’s announcement, PETA put out their video with actress Lily Tomlin, answering complaints from SeaWorld’s customers. Where everyone has a Whale of a Time, except for the whales!

Checked their stock price today. Looks like a SELL to me. $15. How much lower can it go before SeaWorld hires a new CEO? $10?

Nasdaq: SeaWorld Stock Price

Can you believe SeaWorld’s commercials? They think that people are stupid and cannot think for themselves.

What SeaWorld has failed to do is to convince people that it has had a GENUINE change of heart.

Words are cheap. Action is what we’re looking for.

Only when SeaWorld starts to send their orcas to marine sanctuaries will we believe that they’ve had a genuine change of heart.

SeaWorld hasn’t got a good record of doing the right thing. They’ve often strongly criticised activists and writers and refused to budge.

There are thousands of videos like the one below. That’s what SeaWorld is up against. They removed their Facebook page after Blackfish. They didn’t want to deal with it. Big mistake.

The `Stick Our Heads in the Sand & Hope It’ll Go Away’ approach hasn’t worked. Their stock price fell 40-50% in 2014 and hasn’t recovered since then. The Blackstone board decided to change CEOs after the Backlash from Blackfish.

But is the new one doing any better? Initially yes. New broom and all that. He’s had almost 18 months on the job now.

Why SeaWorld’s stock (SEAS) is in trouble

  1. Analysts
  2. Investors
  3. Customers
  4. Activists

Analysts would not be happy to recommend BUY SEAS because SeaWorld has not made any real recovery since Blackfish. Revenue is still down. This obviously affects their profitability and ability to pay dividends. SeaWorld may start making cuts to their expenses (if they haven’t already) which means that maintenance & repairs may be delayed or done on the cheap. This could mean safety risks for visitors and their children with potential legal liabilities when injuries or fatalities happen.

Then there’s the problem of Tilikum. He’s dying. What will happen to the stock when he dies? Hint, it won’t be going up. In the meantime, six animals have died at SeaWorld since July 2015.

Bubbles, pilot whale dies after 50 years in a tank, 30 years at SeaWorld as a `superstar’

Investors who currently hold stock would not be happy if they had bought it when it was above $15. When the price keeps falling, they have to decide. Sell or hold?

Look at the Stock chart. There was a big spike in volume traded after Manby made his announcement and also in May 2016 when the price started going down to $18. “Get out now.” After that, it’s been going down. Those who sold at $20-22 would feel relieved that they did it then.

Potential investors who are aware of SeaWorld’s problems may decide to leave it alone. Why put their money on SEAS when there’s still a lot of negative publicity around it? It’s too risky. Unless the stock drops down to $10 or below and they can afford to hold it for a few years for problems to be resolved. But then Manby (or the board) has refused to release the orcas to sanctuaries. So, looks like it’d be a LONG hold. Why bother?

Customers & Activists like PETA

Millions of people are unhappy with SeaWorld because they have the biggest number of orcas in captivity.  There are groups like `SeaWorld Shut Down’ on Facebook. I’m not a member but thousands are. You can guess what they’re doing.

Also there are websites like this one, The Dodo – For the love of animals. SeaWorld.

The great thing about the internet and social media is that all this information is freely available.

Caring animal lovers and activists can post amateur videos for free on Youtube and on Facebook to their readers without spending a cent whereas SeaWorld has to spend millions of dollars on cute commercials to get people back. They hope.

How’s that working for them? Well, just look at their stock price.

Public Opinion is against SeaWorld

X-Files actress Gillian Anderson (speaking on behalf of PETA) asked SeaWorld to release the remaining 23 orcas to a suitable marine sanctuary. She has millions of fans and she’s a great Ambassador for Animals.

X-Files Gillian Anderson to SeaWorld – Let the orcas go Shared 11,000 times so far since June 16, 2016. In just 2 days!

Actually, there are 29 orcas in SeaWorld’s care (including Morgan).  There are 6 orcas at Loro Parque, Spain. Morgan is feeling very depressed and she’s beached herself after performances. She’d rather kill herself than live the rest of her life in captivity.

Morgan beaching herself at Loro Parque, Spain

If SeaWorld is really unlucky, Morgan could succeed in killing herself and the next bad news for SeaWorld could be about her death if she’s not released soon. She’s only 8 years old. A youngster really.

29 Orcas in SeaWorld’s care

The End For Tilikum?

Tilikum has been very sick and news in March 2016 said that he’s dying.

SeaWorld is keeping quiet about Tilikum. Especially with recent troubles with Orlando/Disney/Alligator/Pulse Club attacks.

When Tilikum dies, all hell will break loose for SeaWorld again. Things has settled down since 2014 but will definitely heat up again when he dies. He’ll be in the news again and the social media storm will start churning. Activist groups like PETA will continue to remind people about Blackfish and Tilikum.

SeaWorld Stock price could hit new lows when that happens. $10?

SeaWorld’s orcas and dolphins will be singing a new song “So long, so long SEAS. Thanks for all the fish.”

My advice to Manby? Deal with the problem. Don’t run away from it. Convince the board to send the orcas to marine sanctuaries.

Spend money sending orcas to sanctuaries or see SEAS stock being wiped out further. It’s their choice.

The orcas have earned their 401K after years of making money for SeaWorld.

Live Long & Prosper. Peace.

Ivonne Teoh