First class interim results
top line growth 74%, yet costs only up 24%
they will have the best part of 700k cash at year end

corporate synergy note suggest eps of 2.09p for the year , current share price 17p

dollywood contract very likely
more parks very likely
no debt

LOQ must be one of the best risk reward plays out there

6 parks which LOQ does circa 80% of its business with, has approx 2 billion debt.

Do you not see this as a risk?.

partly but loq get there money first and its a huge cash cow so with at least one more summer company should have whole markt cap in cash. You can buy 400 million of that debt for 40 million so I see a renegotiation of this debt very likely.

I also see six flags slimming down to the highly profitable core parks of which six flags are in all of them. They can jettison the other for land values clearing a big portion of the debt.

another significant park signed up and parent company have 19 sizeable parks across the world.

This co trumpeted its device and yet it's never caught on here, where we like to queue!
Elsewhere the sp has risen on the back of some (US-) sign-ups but I'm doubtful in these economic days - aren't Parks just trying to make better use of limited resources - without investing in something expensive? . . . . at least until the crowds come back... ... . ... . . If LoQ's turnover is based on users, this could still be a poor year, despite new signings.

the thing to note is that it isnt expensive - an installation typically costs a park 70 000 all in. Wireless architecture is cheap, qbots now made in bulk are cheap. Now think about the payback. Dreamworld are charging about a fiver a person, average 4 people per qbot so 20 a use. There are 500 on site and they regularly sell out so thats 10 000 A DAY!! PArk get half of it so 5000 a day. Direct Cost of sales to parks , about three employees at 50 a day so its massive margin. Payback would typically be less than two months. This is why six flags love it so much. Also theme parks are relatively recession resident. New cars, expensive holidays etc go first. If anyone with a young family will tell you you just have to find things to do during the school holidays to maintain your sanity!!!

btw legoland windsor has been a huge success. Id hope drayton manor is close too.

What did you first buy these at Glenn? I've been watching since 5p and finally bought some today at 40p. Kinda sick, but other than OCZ which is valued at 20% of net assets and also a young growing company (delisting from AIM in order to get US listing though), I couldn't find anything else which had the potential to make 200% in the next 2 years.

Agree that theme parks are recession-resistant. People will still visit. But might have to reduce prices of the system as this would be the first cost-cutting measure for visitors. If a family wants to save 20 on the day, then the Qbot will be sacrificed.

Still like the risk/reward though. Company knows what it's doing. Could be a mass market in a while and able to charge maybe a couple of pounds per reservation.

bought 2000 at 106p years and years ago. Sold out on the wy down at about 70p. The bought various big parcels at 3p 6p 9p 12p. ALtogether hold about 290 000 at average of 7p

WOW! Nicely done Glenn. Especially the hard decision of cutting losses at 70p. 2000 sold there was 20000 bought at 7p!

Like I say, finally dipped my toes in at 40p today. It's a long-termer for me. Might well have timed my buy too early as there is a profit-taker out there. But I reckon I'll be in profit when results are out in a few weeks. Hopefully that'll generate some new interest and drive the price higher. 120p in 2 years would be great :-)

I still like this company, and good see contract win with Parques Reunido in Italy who have 67 parks across Europe. I would love to buy into loq, but not until we can see more contract wins and become less dependent on Six Flags. The debts need to be sorted out here, I believe they were downgraded again at the end of February.

I'm sure loq are a good investment at 40p, but I will wait first for either more contract wins away from Six Flags, or positive news re Six Flags Debts.

results this time next year will be interesting. we will have full contributions from 4 new large parks and the strong dollar effect should see profits of 3 to 4 million

hi spitfire - undoubtedly the sf debt situation is the reason loq arent 100p already. market cap is just 5.4 million , profit will be around 2 million, and they will have over 2 million in cash. Dollar gains should add 15% to that this year plus the 4 new parks. I see further park announcements in April as well.

glen - I'm sure you are right, without sf debt situation it would be blue sky all the way. I will probably miss out on inital gain by waiting now, but will play it safe for now.

agreed, the most dangerous thing would be a misunderstanding of what chapter 11 will mean for sf. i believe it will release the debt shackles to enable sf to be the highly profitable company its current trading suggests it should be.

What a coincidence after discussing chapter 11, I was researching loq and came across a report on Bloomburg just released on Six Flags. Now if Six Flags file for Chapter 11, I agree that the parks will continue to operate and loq will still receive revenue. I would expect the sp to weaken on any announcement which may provide a buying opurtunity. See below........................

--------------------------------------------------------------------------------

March 11 (Bloomberg) -- Six Flags Inc., the owner of a chain of 20 theme parks, said there is substantial doubt about its ability to continue as a going concern unless a successful restructuring occurs.

The New York-based company has $287.5 million of Preferred Income Equity Redeemable Shares, or PIERS, plus accrued and unpaid dividends, due Aug. 15, it said today in a regulatory filing.

Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date, Six Flags said in the filing.

The company may have to seek a pre-packaged or pre-arranged Chapter 11 filing if it cant negotiate a restructuring agreement with the PIERS holders out of court, it said. That would likely happen well in advance of the PIERS maturity date, Six Flags added.

KPMG LLP, the auditors, said there is substantial doubt about the companys ability to continue as a going concern, Six Flags said in the filing.

Six Flags fell 3 cents, or 14 percent, to 18 cents at 4:35 p.m. in trading after the New York Stock Exchange closed. The shares have lost 32 percent this year through 4 p.m. today.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net.

Last Updated: March 11, 2009 17:25 EDT

Where do posters think this turnover ( for LoQ) will come from? It is evident their flagship-principals are doing so badly (that), they need to file for Chapter 11.
. . . . . . . . . . . . . Doesn't that tell you the footfall is down? . . . . . . . . . .
Furthermore I doubt the validity of their revenue model posted here - - these devices don't make the visitor experience better for all visitors - ONLY for those that use it....and I'm slightly doubtful that is really helps them either, since you will Q-bot several rides - and the one that comes up first, will be(!) the one furthest away - hardly likley to improve your experience . . . rather it will have you chasing about.
Far better, IMHO, is a scheme run by the Park management, whereby folk can list their preferred rides 1,2,3 choice - then use a computer to sort out a route such that you experience most of them. As the day moves on the options will change as every day creates different profiles of "poopular" theme rides. This attention to the customer should also create an opportunity to visulise which new rides would create the greatest benefit......
Furthermore I'm noticing that US-income will be affected by the /$ exchange rate.
That's where I think the q-bot system is flawed - it's a selfish technology, rather than one that is benine.....and therefore bound to fail when times are hard.

Hi Hangon, sorry for the late reply. You're the wrong way round on the /$. As a predominantly dollar earner, over the past two years the exchange rate has been $2 to the pound 2007 and about $1.85tothe pound 2008. This year wearecurrently around 1.45, so its a massive benefit. As an example they will announce profits of around 2million pounds. If they earn the same dollars this year that profit would be 2.4 million pounds. The qbot runs in two ways, either normal or gold.Goldcuts youre wait timeby 75%, where as normal i a fairer system where you book youre ride with a normal wait time. and go do other things and you can only book one ride at a time.

Lookmore closely historically at Six flags. Its a vibrant improving business however the previous clowns five to ten years ago saddled it with stupid debts from buying parks and rides too expensively. In fact footfall is up and they have just annnounced their highest spring break crowds on record. "The parent company's flagship park, announced today that Spring Break Out saw its largest one week attendance in the history of the event. The great value and close-to-home entertainment escape proved to be a hit with families and thrill seekers alike over the week of March 14-22. "

It looks highly likely that the debt will be converted to equityremoving over $250 million of charges a year meaning Sf should make significant profits.

Also factor in LOQ have now added4 substantialparksto the list, one an all year round park. As of next week PE will be 3, and they will have the best part of 2 million in cash.

Results april 6th should show nearly 2 million profit. Im hoping for another leg up above 50p. Not bad going from 17p to 40p plus in a terrible bear market.

Ya 50p is nearly here glen.

im expecting 3 million profit this year and 4.5 million the year after.

On a pe of 8 that gives a share price target of 1.50 and 2.50