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TravelCenters of America LLC Message Board

  • granicus007 granicus007 Oct 3, 2011 12:09 PM Flag

    TA- in or out? broke or rich?

    fellow longtime posters....ok, at these prices ($3.30ish/share today), TA is prices for going out of business. I spent hours again this weekend going over the financials, the "hard" assets that TA owns, the business, their relationship with HPT. Here is the down and dirty.
    * the U.S. freight index remains strong. I have spoken to a number of sales people in the freight biz and all said it remains strong.
    * fuel prices are continuing to fall...which means TA retains higher pump prices LONGER and can make MORE $$$. It is the nature of this business.
    * TA now owns 17 travel centers outright-no liens, no mortgages-nothing. Do the math, use the same "bargain" prices TA paid for the group of travel centers this year.
    * TA owns outright 8 parcels of land. All these are highway/interstate frontage and average 23 acres each with zoning in place.
    * add in the operating business, the shops/stores/restaurants, the access & visibility, the high margin retail biz, the refusal of TA to "chase" low margin fuel sales, the inventory, the cash on hand, a landlord for HPT that has proven they will work with TA no matter the economy (meaning TA will not go broke).
    * TA along with Pilot/Flying J have a complete and utter DUOPOLY...they are THE big dogs in the kennel...note TA's CEO stated in a recent conference call that TA considered these locations "irreplacable"...meaning most of the prime interstate highway locations that have proper zoning are mas, no mas.
    * since I own a boatload of TA stock I am disappointed in the share performance...BUT just wait til Q3 earnings are announced in a few is good, truck drivers have money in their pockets and they are spending it, fuel prices have been gradually declining...this is ALL good for TA shareholders.

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