Spartan Trader - Comments

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Tesla Is Going To Embarrass Warren Buffett
7 years ago

Elon is having problems producing electric cars in mass so I do not expect electric trucks to be in abundance for many many many years. Oil will come down in price if the demand for oil changes which will make it less beneficial to own electric.

Tesla Is Going To Embarrass Warren Buffett
7 years ago

TA deserves a discount due to its relationship with HPT and RMR but not not a 60 percent discount to book when CASY is trading at 3X Book

Tesla Is Going To Embarrass Warren Buffett
7 years ago

The Truck Owners are not going to just switch over and buy an entire new fleet of trucks. Additionally, The energy component of earnings is the smallest part of net income. Travel Centers and Convenience Gas Stations make money from all other services which have higher margins.

csnews.com/whats-so-shocking-about-warren-buffetts-investment-pilot-flying-j

TA won a lawsuit against FLT and if they dont appeal by October 12th then TA will have a 45-50 cent one time addition to earnings and regardless a 7.5 cent benefit to earnings each quarter.

realmoney.thestreet.com/.../travelcenters-america-gives-me-reasons-not-give-its-shares

Additionally, mergers in the space have been beyond hot with 711 Circle K (Couche Tard), and others buying independents and public companies (CST) at record levels and valuations.

www.cspdailynews.com/mergers-acquisition-growth

https://csnews.com/mergers-and-acquisitions

Finally, it comes down to valuation.

Reported Book value of 13.19 per share

TA-Just since 2011. Real estate is up a ton since 2011 and it does not take into effect real estate and other assets owned pre 2011.

TA has 318M in Debt at around 8 percent and 150 from parent company at 0 percent.

http://bit.ly/2xP7EX2

Acquired and Developed Sites

Since the beginning of 2011, when we began our growth and acquisition program, to June 30, 2017, we have invested $895,324 to develop, purchase and improve travel centers, convenience stores and standalone restaurants.

For the 12 months ended June 30, 2017, these investments produced site level gross margin in excess of site level operating expenses of $103,499, which, on a sequential basis, was $1,043, or 1.0%, more than the site level gross margin in excess of site level operating expenses for the 12 months ended March 31, 2017.

We believe that our investments require a period after they are developed or acquired and upgrades are completed to reach expected stabilized financial results, generally three years for travel centers and one year for convenience stores.

We acquired 37 travel centers during the 2011 to June 30, 2017, period. Of these stores, 36 are included in the "Travel Centers Segment Same Site Operating Data" for the six months ended June 30, 2017 and 2016. As of June 30, 2017, we have invested $313,368 (including the cost of improvements) in these 36 locations, and these locations generated $53,214 of site level gross margin in excess of site level operating expenses during the 12 months ended June 30, 2017. We also developed four travel centers for a total investment of $95,948, and these locations generated $4,890 of site level gross margin in excess of site level operating expenses during the 12 months ended June 30, 2017 ; we operated these locations on average for less than a full year as of June 30, 2017 (one opened in each of January, March and May 2016 and March 2017).

We acquired 228 convenience stores during the 2013 to June 30, 2017, period. Of these stores, 199 are included in the "Convenience Store Segment Same Site Operating Data" for the six months ended June 30, 2017 and 2016. As of June 30, 2017, we have invested $394,350 (including the cost of improvements) in these 199 locations, and these locations generated $33,530 of site level gross margin in excess of site level operating expenses during the 12 months ended June 30, 2017. The remaining 29 locations were acquired by us in 2016 for a total investment of $48,996 (including the cost of improvements), and these convenience stores generated $3,207 of site level gross margin in excess of site level operating expenses during the 12 months ended June 30, 2017. Some of the 29 convenience stores we acquired during 2016 were fully or partially out of service while being renovated during the 12 months ended June 30, 2017.

We acquired one standalone restaurant during 2015 and 48 during 2016 (38 of which were operated by franchisees), and in 2017 acquired six of those 48 from one of our franchisees. As of June 30, 2017, we have invested $41,976 (including the cost of improvements) in these 49 locations, and these locations generated $8,692 of site level gross margin in excess of site level operating expenses during the 12 months ended June 30, 2017.

Since June 30, 2017, we completed the acquisition of a travel center from one of our franchisees for a purchase price of $13,050.

Tesla Is Going To Embarrass Warren Buffett
7 years ago

The Truck stops make all their money on Food and other trucking services. The cost of owning an electric truck will be unaffordable for at least 10 years.

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