Saturday, November 05, 2005

New Stock Pick: Life Time Fitness (LTM)

I am going to initiate a "buy" on Life Time Fitness (NYSE: LTM). If you can pick some shares up under $37 or $36.50 that would be a gift. I have actually been inside these centers and they much nicer than any fitness center I have ever been in. You can take a virtual tour on Life Time's Website. They are the country club for the suburban middle class and upper middle class ($50,000-$200,000). Life Time Fitness is more family oriented than Bally Total Fitness (BFT) and can appeal to a broader market. Look for earnings growth of 20-30% for the next five years. Hopefully I can add LTM to my portfolio before the end of 2005.

Other Interesting Notes:
  • 7.80% of Float is Short
  • Fidelity Contra Fund is the largest mutual fund owner: 2%
  • Institutional Ownership: 58.6% (MSN Money)
  • 35 Million Shares Outstanding
  • Lots of Institutional Buying
    • Buyers: 8,300,815
    • Sellers: -1,922,088
Note: I currently don't have position in LTM


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