Planet Fitness. And it dropped $4 on his comment. Don't touch it short yet. I've been watching it for awhile. I'll let you know when.
I got hit trying to short PLNT, luckily I just did 1 cheap OTM put, The reason was the market was dropping but PLNT held up, thought it was wrong but then it made ATH smh What is the reason to short it now?
Planet Fitness is the McDonalds of the fitness industry. Sooner or later they are going to develop growing pains.
Most of their top line comes from franchise fee's. Without looking, I think they only own a few 100 of the 1500 gyms. Their $12/month is a good deal, and I think there are more premium packages. One ET'r here (Capt Obv) has mentioned he likes it. I think the model works well in tier 1 or 2 cities, but I question how well the franchisee's will do in smaller towns once the initial flock of new members slows. The upper teir cities are all built out now so growth has to come from smaller metro areas. They have high overhead. Rent, taxes, lights, 24 hr staff/instructors.... I mean they need to keep a lot of new members coming through those doors at that price to maintain positive cash-flow. I wouldn't franchise one, but that's just me. At 12.5X sales, 18% net margin, 1B debt, $1.70/share FCF, and a forward PE near 55.... its definitely gotten way ahead of itself. Cramer has had no small part in that, he pumps it all the time. The good thing is the short interest up till now was relatively light. The bad thing is Carter Worth just put it on a lot of retail radars. The more shorts that pile on now, the higher it will go. When it does correct however, it will be a nice gap down. At least 10%. But one could get slaughtered waiting. Good stuff though.
As a quick daytrade/swingtrade... I'd take it long if it gets close to $75 today. I bet it runs north into the close. Its at $75.65 now. That may be the bottom too, although I think it'll drop a little more.
PLNT really has pulled back, but WING has not. WING near 52 week highs......100+ PE Ratio !!! Is WING perhaps the better short right now ? To me WING smacks in the face of the healthy choices movement in the USA. Wings are just so bad for anyone watching their cholesterol or weight.