Stocks

Plant Fitness Is Definitely Not Judging

Planet Fitness Inc is a franchisor and operator of fitness centers in the United States. It has approximately nine million members and more than 1,200 stores in 47 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic.

I remember when Planet Fitness debuted on the Markets in 2015.  I said to myself, here we go, another fitness play trying to cash in.   Little did I know, they weren’t trying to cash in, but use the cash from the Markets to expand. 

Peter Lynch says invest in what you know.  Boy, I wish I took his advice.  I signed up for Plant Fitness years ago and every month $25 come out of my bank account each month.

NOTE: memberships are as cheap as $10 / month…WOW, very a cheap cost to pay for your health.

And this is why the stock is up 4X since the IPO.  And this is why Planet Fitness reported fourth quarter of $0.34 / share, topping the Street consensus at $0.32 cents / share, which is up $0.24 / share from a year ago.  And this is why Planet Fitness has topped the Wall Street estimates the past 14 quarters.

Source

That $25 doesn’t mean much to me regardless of whether I go to the gym or not and psychologically, if I make it a just a couple of times of month, I feel I got my money’s worth.

NOTE: that’s not the case, since hitting 44 years old last year, I’m more in to health than ever…even have a goal of dunking again by Oct.

Yeah, there’s a lot of competition out there with a bunch of gyms just in my immediate area.  But that’s what I mean, Planet Fitness is inexpensive, caters to the causal gym person doesn’t take much to operate and I can go work out at 7pm or 3 am.  

Planet Fitness franchisees have signed agreements to open 1,000 more new gyms, about half of the them will be opened within the next three years.  Planet Fitness wants to have 4,000 gyms in the US when it’s all said and done.

So how high can the stock price go, lets go to the charts to find out? One would think this monthly chart was Netflix or something.

The chart suggests to go long on a pull back to the weekly demand at $54.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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