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TravelCenters of America LLC Message Board

  • granicus007 granicus007 Aug 7, 2012 9:08 PM Flag

    Keeping TA in perspective

    I don't like the structure either. But there are lots of company that have similar boards, similar controlling shareholders, etc.
    Think Zuckerburg at FB, Rupert Murdock at News Corp, etc.
    But here is where my money is on TA continuing to increase shareholder value.
    #1- TA has been buying ALL the recently acquired travel centers directly. No HPT leases, no HPT selling improvements. No HPT period. And TA probably now owns about 20 sites in their entirety.
    #2- TA has 8 prime parcels of land with interstate frontage, owned free and clear that are worth a lot of money.
    #3- TA has been buying travel centers for 4 to 4 1/2 x cash flow. In a normalized environment these sites should be literally 2x what TA paid for them.
    #4- TA management owns stock and stock options. Lots of them. So a human can be counted on to look after their own self-interest and if TA stock performs well it could mean literally millons of dollars to TA management. TA management is NOT stupid. Look at their bio's. O'Brien has an MBA from Wharton for goodness sakes.
    #5- TA management are experts at buying and managing commercial real estate. Again, look at their bio's. (And the case could be made that TA is really in the real estate business now that they own so many valuable properties.

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    • Please don't let this become a political thing, because it will kill any thread.

      As a small business owner around 100 employees in a construction related service industry, there ain't no way in heck, we are going to hire anyone, with the impending health care situation and economy. We are going to keep on tightening up and slowing operations until November.

      TA could either explode or slowly dwindle down, depending on which way the political wind blows this November. Investors are going to sit tight. Plain and simple. Even-though TA's numbers are good now, it doesn't take much of an economic downturn to cause TA's earnings to go down the drain.

    • precisely! Although I put the site count at about 24 right now...

      The fact the with 2% reduction in fuel sales we still beat by 17% is amazing in the strength of the new TA. This management is doing the right things as far as growth strategy but they are not paying too much attention in the stock price. I was in the que to ask a question as to why we are still trading as such low multiples to the industry but they didn't get to me. I know that there is a lot of shaking the tree going on but also it could be that a large number of the investor that came in on the secondary have lost patient and want out. The head wind has always been around the secondary price if you noticed. Thoughts??

      • 1 Reply to sirius_yomama_2
      • Yes the offering was at $5.69 and investors
        said BYE BYE all the way down to $2.79..a 50%
        total correction! I wish my crystal ball had
        told me where the bottom was going to be!

        But what TA wanted to do was what any management
        would want to do. To buy truck stops at bargain prices
        that would be immediately accretive to the bottom line.
        There are bargains around; still are in places.

        The market SEEMS to be improving. If it does we belong at
        $10.

        GLTA

        Biff

    • Agreed! Your post makes alot of sense.

      Definately agree this is also a realestate play

      Way under valued!! No way would they would sell or go private near this price

      Mel

    • Granicus,

      I think one very important point on the call was made when Susan Anderson from Citi asked Tom if he has seen slowing lately consistent with the macro economy.In response,he said that business is not robust but is growing though,although slowly and they have other services at their sites to help pick up the slack.

      Somewhat good news but the stock probably doesn't move because I own it.

 
TA
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