* state governments are in financial straits and some are so strapped they are closing interstate rest areas. This is good for truck stops as it will have the effect of forcing more drivers to other alternate parking areas such as TA, where the drivers may spend more $? * new truck stop locations - much harder now due to local zoning laws against *anti-noise * anti-idling * anti-refrigerated trailer engine * anti- heavy traffic (especially big trucks). And again this will really BOOST the future values of existing-and already zoned-truck stop areas.
If someone had to start from scratch and build over 200 truck stops, the zoning, the land development, the interstate access & visibility, construction,etc I suspect it would cost exponentially more than the present entire market cap of TA? And I believe the market is MISSING the wonderful MOAT...and the bigger and stronger TA gets, the more TA can scale, the less competition they will have and the higher the potential profits.
I agree...I was disappointed initially about the secondry but if they announce a big deal on realestate location such as the 8 they purchased then they done a smart move long run. We are scaling bigger in a bad realestate market as other weaker holders shrinking. This is putting the pricing power in the hands of the essential duopoly, TA and FlyingJ. I have alwasy said that we are eventually going to see higher margins in the fuel prices built in....its absolutely rediculous for these two players to lose money in any quarter!! The margin should be high enough to make money in all Qs...but hellava lot more in Q2 and Q3! why should the oil company make all of the profits...
As the we are seeing lower gas prices at the wholesale...this time we will see higher prices at the pump stay relatively higher then before for these truck stops...the future is bright for TA...just needs time.
as we all know Pilot/Flying J is privately held so not much info out there.
But, the family that started Pilot and continues running it got some press as one of the owners of Pilot/Flying J is Bill Haslam.
The Haslam family has given away tens of millions of dollars...most of which was made from Pilot. Additionally when they took over Flying J, apparently they allowed some private investors to throw in with them. And one of the private investors is none other than Byron Trott, who is the guy who formerly ran Goldman Sachs Chicago office and is well known as Warren Buffett's investment banker. Obviously Mr Trott knows a good thing when he sees one and the Haslam family has gotten BIG RICH from Pilot. So the question remains "can TA Management make it happen?" I think they can or I wouldnt own 25000 shares....