Oh, thanks for the explanation. I am sure the local owner of your gas station is a real expert in these matters. He probably has a Masters from Wharton.
How is a yield of over 9% on a company you love called "useless information"?
Perhaps you cannot afford securities that are priced over $8 per share?
I am so so bullish on this stock. The upside is huge compared to the downside. I think any bad news in the current quarter is priced in. Many restaurant chains are having a tremendous quarter and this company is moving into the restaurant business big time. My only question is I don't know much about the Minit Mart brand and what gives them an advantage in the convenient store market.
or, better yet, double your money in shares of TA. hmmm, seems like a no-brainer to me. especially if rates rise, you'll be likely to lose principal on TANO.
btw, i confirmed my thinking with my local gas station owner this a.m. about margins on gas sales. he said he's getting some gas in today and the price spiked 10 cents (not sure why, maybe a local supply issue) and that it may squeeze his margins if they don't raise the price by a corresponding amount. the flip side is also true. as prices fall, margins rise at least for a period of time before they lower prices and are back to their normal levels. btw, margins DO NOT decrease simply because the price of gas decreases. margins are a flat amount, not a flat percentage.
I doubt $4 unless their new businesses drag their earnings down. I expect their travel center business to make at least a $1.00 per share. Let's say they only do 80 cents then $4 would be a PE of 5. Even TA deserves a projected future PE higher than 5.
TA is a growth company so their equity goes into expanding not staying the same and paying a dividend. They did a major dilution to help them grow. In my opinion it hurt sharrholders.. I would have preferred to own a higher percentage of the old business instead of a smaller percentage of the new larger company. The dilution significantly lowered the book value per share and the potential profit per share. Maybe in the long run after they work through their expansion cost their growth will pay off but for the last few years the dilution and expansion has not been good for the shareholders.
They are paying it to me. I own their bond TANO(pays 8%) and HPT, they pay leases to them and their dividend is 9%.
Sentiment: Strong Buy
Name me a high growth name that pays dividends. Normally an owner of truck stops and c stores would not be a growth story. But the explosion into the c store space does show a high growth strategy.
As per the deferred rental agreement no dividends are to be paid until the $150M has been paid off therefore no dividends for the foreseeable future
It may just boil down to how well they manage their profit margins on fuel. They forecast .17 cents per gallon during the last conference call.