here's why * go back and look at financials for 2008 when fuel prices were falling...TA is going to make a sack full of $ in Q2 as TA's fuel margins will be much higher than the norm...in a similar of 2008 environment TA printed money... * rent payments and interest on those payments greatly reduced * added 5+ travel centers in Q1, which will be accretive to earnings starting Q2-bargain purchases which in a normalized environment will probably be worth twice what TA paid. * TA is not going broke...very little debt and TA now owns over 10 travel centers outright plus several commercial interstate lots - no mortgages * the non-fuel sales are approx $1B with very high margins...mouth watering - if the non-fuel sales were separated from fuel, TA's valuation multiples would be substantially higher * along with Flying J/Pilot, TA is now part of a duopoly...they are one of two 800 pound gorillas * barriers to entry in this retail segment is very high due to the high fixed costs * TA has the potential further solidify their duopoly status and leverage their economies of scale * I'm not happy with the dilution either - but TA stock is down 25% in one week...way over-sold * TA's management is heavily incentivized thru stock options...we are all in the same boat I am a long term, value oriented investor and willing to wait. But all the ingredients are all in place for TA stock to be very rewarding..back up the truck boys..
At these prices you did yourself a huge favor by loading up. I hate the offering too but as I stated earlier if the money is used to acquire bargain locations at fire sale prices as we saw in the 8 centers purchase in Q1 then its worth it big time.