Market update
ISM index is at 58.7 in Nov., which is a little lower than what it was in Oct.
In china, the HSBC purchasing managers index dropped to six months low, raising fears of a slowing Chinese economy.
Retail sales dropped 11% than last year during thanksgiving.
People’s Bank of China cut its one- year loan rate by 0.4percentage points
The ECB makes its policy announcement Thursday 11.21. Persistently low inflation and a flagging economic recovery have ramped up the pressure on the central bank.
GM and Chrysler on Tuesday posted their best Nov. U.S. sales figures in several years. Ford Motor Co. reported a decline.
OPEC Announcement
Announced that it declined to cut oil production.
Oil price dropped significantly on Friday.
Stock Pitch
Life Time Fitness, Inc.
Business Profile
Estb. 1992 in Chanhassen, MN
13 fitness centers
Designs, builds and operates fitness and athletic centers
Stock Summary
Prev. Close: 54.47
Open: 54.39
PE: 18.42
Beta: 1.44
Industry Statistics 2013
US HealthClub Industry Revenue: 2.4% growth past 5 years
US Health Club Memberships: 2.5% growth past 5 years
Core Members 2% growth past 5 years
Financials
in Q3 2014, total revenue grew 6.6%
Total revenue for the first nine months of 2014 grew 6.6%
Membership dues: 6% increase
In center revenue: 9% increase
Operating Cash Flow: 245M
Debt: Equity = 0.49
Expect 6.6% increase in revenue due to holiday season and expansion.
In the News
Dec 3: Acquired ShapeMed- wellness and non- surgical aesthetics company
Jan1-4: Million Workout Weekend
Holiday season memberships expected.
Forecast
They are expected to grow because of expansion
Suggest to be a short term holding