BTCS is a cash burning business with little equity. They should need additional financing to stay in business. They claim new bitcoin mining equipment will make them a very profitable company. If what they say is possible they should be able to get new financing. The first risk here is that they don't get additional financing. The second risk is the dilution would be awful. The third risk is that after additional financing the new equipment doesn't perform as claimed. If things go according to their plan then BTCS should turnout to be a great investment.
I doubt if the price was a real steal because surely plenty of restaurant companies would have looked at buying them. It does looks like a good opportunity for TA to try to see what they can do in the stand alone restaurant business.
Obviously Samsung thinks there is potential value here.
More like .15 if you remove goodwill and intangible assets. Not sure how long a company that keeps losing money should have goodwill.
Nice post but I think they currently are overpriced. Their pretax losses are now much worse then back in their low stock price days. The stock price increased as they showed significant revenue growth. We now know that their revenue growth has come from money losing business. WYY will be a good buy once they prove that they can add profitable business.
I see the issues as being how will they finance their planned expansion and will the new equipment be as good as promised.
They might be entitled to a payday but it needs to come while NLST still exist.
Not sure why it trades so low. I understand they are doing bad and right now retailers are taking a hit but their financials are strong enough to give them plenty of time for a turnaround or to make them a good takeover candidate.
Did their projections include increasing their losses as their revenue grows?
A few years ago when I watched TA closer, I noticed that c-store companies tended to have better fuel margins than TA. I think that TA's diesel margins can be significantly impacted by a couple of their truck stop competitors. That adds another unknown to their future profits.
I think it is good that they diversify and don't just stay with truck stops. Their truck stops appear well managed so I am guessing that eventually they will do well in the c-store business.
TA's stock price moves up and down a lot because their profits are unpredictable and do big swings. Most of the time they look undervalued because people don't trust the relationship they have with their landlord.
I just wait for the price to get low like in the $8s before I buy and then sell when earnings are going good and the price is moving up.
Something big might happen and make this company valuable but I doubt if just talk will work anymore. Too many past disappointments.
I think it will go below $.70. Their revenue isn't growing as expected and their margins are awful. If they don't improve their margins it will take tremendous growth to just get their pretax losses back down to where they use to be. Growth might come and it might not. Growth might be profitable and it might not.
In 2013 their pretax loss was only $1.3 million on $47 million in revenue. Now they probably need revenue to be over $80 million to get their pretax losses back down to $1.3 million. Are people here expecting future revenue to be way over $80 million or is it a surprise that their spending increased as much as it did?
I went and looked at retail fuel price charts and over this quarter (July-Sept.) the avg. price per gallon dropped by about 40 cents. The prior quarter (Apr.-June) the avg. price went up by about 30 cents. The Apr.-June quarter had 18 cent fuel margins so maybe the industry is changing and TA can have good fuel margins on a regular basis.
I like EV/EBITDA analysis but in this case I think future EBITDA is a huge unknown. The $38.5 MM was from high fuel margins. Drop the fuel margin 3 cents and the EBITDA becomes $22 MM. Market conditions have been favorable for high fuel margins (dropping fuel prices) but I doubt if that continues. I can't remember what their fuel margins were back in the days of rising fuel prices but they were much worse. It will be interesting to see how they do next quarter with fairly stable fuel prices.
Sounds great. If they can make anywhere near that amount we could be looking at a $.50-$1.00 share price. We still need to see some actual performance from new equipment and what happens concerning the possible $5 million equity financing.
They need profitable growth not just growth.
They now need high fuel margins to be profitable. High fuel margins come during times of dropping fuel prices which probably won't continue. A 3 cent lower fuel margin and they wouldn't of been profitable. I had planned on rebuying if it went into the $8s but now I think I might wait and see what a quarter without dropping fuel prices will look like. They might be building something good for the future but I probably will get a chance to buy this stock cheaper.
Without good fuel margins this would have been an awful quarter. I know they are investing in the future but they have been doing that for years. Prior results also included growing cost. Improvements from past investments should now be helping to offset new investments. Quarters with fuel margins about the same as the prior year quarter should not be a lot worse.