Just wondering what you guys think of TA acquiring all these convenience stores?
Is this good or would truck centers complete with truck repair bays and restaurants, even if they built
new ones, be better?
Yes; "(except for redemptions and repurchases for nominal consideration with respect to share awards granted by TravelCenters under its equity compensation plans from time to time in effect)," this agreement is still in effect.
But is this agreement still in effect, or is it superceded by the new agreements with HPT, which may or may not continue such a clause? Thanks for your dd. I am impressed.
See 8K filing 1/25/11 5. Amendment of Deferral Agreement. Anything in the Deferral Agreement to the contrary notwithstanding: (a) beginning January 1, 2011, no interest shall accrue on the Deferred Rent absent acceleration as provided in this Section 5, (b) $107,085,000 of the Deferred Rent shall be due and payable on December 31, 2022, the expiration of the term of the TA Lease and (c) $42,915,000 of the Deferred Rent shall be due and payable on June 30, 2024, the expiration of the term of the Petro Lease, provided that upon (aa) the occurrence of an Event of Default under either the TA Lease or the Petro Lease, (bb) the election of any director to the Board of Directors of TravelCenters who was not nominated or appointed by the then members of the Board of Directors of TravelCenters, (cc) the adoption by the shareholders of TravelCenters, at an annual or special meeting, of any proposal, other than a precatory proposal, not recommended for adoption by the then members of the Board of Directors of TravelCenters, (dd) any declaration of a dividend or other distribution by TravelCenters or its subsidiaries in respect of TravelCenters’s common shares or any redemption or repurchase by TravelCenters or its subsidiaries of TravelCenters’s common shares (except for redemptions and repurchases for nominal consideration with respect to share awards granted by TravelCenters under its equity compensation plans from time to time in effect) prior to repayment in full of the Deferred Rent, (ee) the occurrence of any event which would require acceleration of repayment of Deferred Rent under the Deferral Agreement or (ff) any default under the Deferral Agreement, as amended by this Section 5, all Deferred Rent shall be immediately due and payable. Upon acceleration of all or any portion of the Deferred Rent under this Section 5, interest shall accrue on the Deferred Rent so accelerated at the rate of 1% per month on the accelerated Deferred Rent amounts from t
Is TA prohibited from buying shares? I find it hard to believe that RDG would suggest it if that were so. Hope you have facts to back you up.
RDG's proposed $100 million share buyback is a non-starter, per the deferred rental agreement, of a few years ago. He is correct, however, when he states the "labyrinth of complex transactions has led to investor confusion."
The rats are jumping ship because they can't figure out the business. Puking the stock out on heavy 3 day volume. Plenty of chart support at the 12.50 area and I'll be happy to relieve someone of the panic induced selloff!
All revolves around the price of oil. Outside of oil the earnings were good. But if oil stays low the stock is probably fully valued now. The oil prices are neither rising nor falling now because many frackers have to keep drilling and selling to keep the cash flow going and the saudis will not relent until the frackers finally give up. This suggests that low oil prices, even lower, will stay here for a while and then suddenly when the frackers give up will spike upwards.
I liked the report. I would have liked it more if SG&A expenses did not increase. Management noted that some expenses would go away if they stopped buying stores, but there are a lot of buys in the pipeline. That the number of C-stores will grow from zero to 200 over a couple of years (by the end of 2015) is pretty significant yet only a handful of the stores are contributing to earnings at this point.
TA is trading slightly below book value with yesterdays drop. That doesn't make any sense. The market's reaction was short sited, and the price should gradually come back.
I was surprised how many analysts were on the conference call for a small cap stock. I am confident the institutional ownership will increase, not decrease with everything management is doing. AS with many value plays, this one is going to take a little while to get where it belongs, with a share price in the low to mid $20s.
PS - While my average cost is around $10, I did add yesterday.
I used to play TA, but no more.
Earnings are too unpredictable. Sold off its jewels, the travel centers.
TA works for its landlord anyway.
So I buy HPT. Good dividends. 10% owner of TA.
cj, not everyone on these boards is honest like you.
Some never make a mistake it seems, but they jump
at the chance to point out those of everyone else.
I have fond memories of TA.
Someday I hope I will get a chance to have a steak at
one of their nice restaurants.
As you said the issue is the oil price. The earnings were poor because of low oil prices, if oil goes up then earnings will be good.
This company is on track. The fact that they have the money to pay off debt in the current market is a positive. Oil prices will go up and this company will also go up. Look at their history, they are a strong company financially and managerially.
Sentiment: Strong Buy