Replies to post #50624 on Sharing Knowledge in Smallcaps

[bar1080]

You should definitely register for SA especially now that they're having that open house on their PRO level reports. Basic registration--that's what I have--is free.

I just spotted a notice on SA that the Open House ends in 6 days, although that may vary with the user. Perhaps some members don't get the Open House at all. I'm no expert on SA.

There's a second PRO-level report on Planet Fitness which is dated March 7. It's also very negative about the stock, and more blunt in its criticism than that first report.

For example: "Planet Fitness, Inc.'s (NYSE:PLNT) financial statements are as misleading as their ads and you need to read the fine print".

That report concludes:

"In my March 2016 article, I covered PLNT's business model and the fitness industry. My August article covered their complex financial structure and included information about the tax benefit liability with TSG. This article was to alert PLNT investors to possible lower future growth and raise the issue about a potential future technical default on their bank debt.

I often write about bankrupt companies and there are almost always yellow flags prior to bankruptcy/restructuring that should have alerted investors to the direction the company was headed. Previously, I just thought that PLNT was just overpriced, but now I think that there is a potential for some type of restructuring within a few years.

With a lower growth outlook and a potential for a future technical default, I rate PLNT a strong sell. For investors willing to assume risk, I rate PLNT a short sell.

Disclosure: I am/we are short PLNT."

[bar1080]

I just enrolled in a health insurance plan that includes free fitness club membership in 13,000 affiliated gyms around the world via an organization called Silver Sneakers. Planet Fitness gyms are included. My understanding is the gym gets paid by Silver Sneakers a buck or two each time I visit.

I've yet to try PF but I've used SS to get free use of our municipal rec center that I used to pay about $8 a day to use. That's a fabulous deal for me. Could save me about $500 a year. But how do such plans affect PLNT's bottom line? https://www.silversneakers.com/

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BTW, a SA PRO subscription costs $300 a month, or $2,400 a year.
https://seekingalpha.com/pro/checkout

[bar1080]

The Secret That's Vital to Understanding BRK's Success:

BRK borrows MUCH cheaper than the US Treasury!

"Berkshire’s debt has benefitted from being highly rated, enjoying a AAA rating..."

"Berkshire’s more anomalous cost of leverage, however, is due to its insurance float. Collecting insurance premia up front and later paying a diversified set of claims is like taking a “loan.” Table 3 shows that the estimated average annual cost of Berkshire’s insurance float is only 2.2%, more than 3 percentage points below the average T-bill rate. Hence, Buffett’s low-cost insurance and reinsurance business have given him a significant advantage in terms of unique access to cheap, term leverage. We estimate that 36% of Berkshire’s liabilities consist of insurance float on average."

http://www.businessinsider.com/warren-buffetts-investing-strategy-2013-12