Wiedower Capital, a Texas-based small cap, value-oriented investment firm led by Travis Wiedower, is bullish on Parks! America, Inc. (OTCMKTS:PRKA), which operates theme parks in the United States. Wiedower Capital added the company to its portfolio during the second half of the last year. In an annual letter to investors, the investment firm said that PRKA is “extremely undervalued” despite having “a very durable business model and a durable competitive position.” According to the firm, there are three main reasons behind its decision to invest in Parks! America. In this article, we’ll take a look at Wiedower’s investment thesis on the theme parks operator.
Parks! America is a $19-million market cap company that owns two regional drive-through wild animal safari theme parks in Georgia and Missouri. At the parks in Pine Mountain, Ga., and Stafford, Mo., visitors can rent a car and can observe hundreds of animal and can feed some of them.
According to Wiedower, the founder and manager of Wiedower Capital, Parks! America attracted him due to three reasons: a durable business model that is resistant to technological change; the parks have advantage over local monopolies; and the recession-resistant business. He believes that Parks! America, Inc. (OTCMKTS:PRKA) has a durable business model that is resistant to technological change.
“We’ll see how good virtual reality is in ten years, but I highly doubt it will replace the experience of having a zebra eat out of the palm of your hand. I can’t think of any reasons that humans will suddenly stop wanting to go experience wildlife in this unique fashion,” according to Wiedower.
Further, Wiedower said that Parks! America’s two parks benefit from local monopolies.
While they do compete with regular zoos, theme parks, water parks, and other entertainment facilities to some extent, no one in their right mind would open another drive-through safari within a couple hundred miles of one of their parks. Customers drive from hundreds of miles away to visit these parks and it doesn’t make sense to directly compete with a unique destination like that. The benefit of these local monopolies is pricing power. They’ve increased ticket prices the past several years without any effect on traffic.
Moreover, Wiedower believes that this business should be relatively recession resistant, given the ticket price of $15-$25. “So it’s a fairly cheap way to spend a day, even if money is tight at home. Also, the Georgia park performed well through the financial collapse with revenue growth and operating margin expansion,” Wiedower noted.
Talking about the valuation, Wiedower said:
The result of being ignored is undervaluation by even the simplest metrics. When we purchased Parks! America around $0.23, it was selling for ~14x on an enterprise value to owner earnings basis (before tax reform). In my opinion, that’s too cheap for a company with a durable competitive position that is still growing, expanding margins, and should perform just fine through a recession. After doing several discounted cash flows, even before tax reform it was hard for me to get a fair value lower than $0.30. Especially after tax reform, the assumptions necessary to get a fair value equal to today’s price are just unrealistic in my opinion. At the former corporate tax rate, my range for fair values was between $0.30 up to $0.48. Simply punching in a 21% tax rate increases this fair value range up to around $0.36-$0.54. With that being said, as a result of tax reform it’s possible the company will increase wages or make more investments in their parks. Thus, once management discusses how tax reform will affect them, I expect my fair value range to be somewhere between those two ranges that I just listed. All that is a long-winded way of saying I think Parks! America is extremely undervalued and I’m surprised the stock hasn’t moved up since tax reform passed (in fact, the stock hasn’t moved much in ~5 months).
Safari Park/Public Domain
Wiedower expects Parks! America, Inc. (OTCMKTS:PRKA) to “reach more mature, GDP-like growth sooner rather than later (though that could be two years away or ten).”
Meanwhile, shares of Parks! America have been performing well for the last 30 months, currently trading at $0.25 per share. Over the last 12-month period, the value of the stock has jumped whopping 126%. The P/E ratio of the stock is 14.87. The company generated a total revenue of $6.24 million in 2017, versus $5.03 million in 2015, $4.38 million in 2014, and $4.01 million in 2013.
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
It’s the revolution reshaping every industry on the planet.
From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.
Here’s why this is the prime moment to jump on the AI bandwagon:
Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.
Imagine every sector, from healthcare to finance, infused with superhuman intelligence.
We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.
This isn’t a maybe – it’s an inevitability.
Early investors will be the ones positioned to ride the wave of this technological tsunami.
Ground Floor Opportunity: Remember the early days of the internet?
Those who saw the potential of tech giants back then are sitting pretty today.
AI is at a similar inflection point.
We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)
The AI revolution is upon us, and savvy investors stand to make a fortune.
But with so many choices, how do you find the hidden gem – the company poised for explosive growth?
That’s where our expertise comes in.
We’ve got the answer, but there’s a twist…
Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.
That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!
Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.
This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.
It’s like having a race car on a go-kart track.
They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.
Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.
We want to make sure none of our valued readers miss out on this groundbreaking opportunity!
That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.
For a ridiculously low price of just $29.99, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.99.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.