DooDiligence Posted June 19, 2020 Share Posted June 19, 2020 Way to go. Watch those position limits, though. What do you mean by position limits? Might have been a joke? Link to comment Share on other sites More sharing options...
Williams406 Posted June 19, 2020 Share Posted June 19, 2020 Apologies--meant as a joke, but inelegant phrasing given existence of exchange-set actual position limits on certain contracts. I'm putting in my notes for future reference: Good: Use emojis to clarify joke status of comment Better: Just don't post that! Sorry for the confusion. Link to comment Share on other sites More sharing options...
capitalg Posted June 19, 2020 Share Posted June 19, 2020 No problem - just wasn't sure if there was something more I wasn't aware of! Link to comment Share on other sites More sharing options...
EricSchleien Posted June 26, 2020 Share Posted June 26, 2020 Club operations re-opening! Link to comment Share on other sites More sharing options...
BG2008 Posted June 29, 2020 Share Posted June 29, 2020 Did LAACZ just traded 481 units today? Link to comment Share on other sites More sharing options...
EricSchleien Posted June 30, 2020 Share Posted June 30, 2020 Did LAACZ just traded 481 units today? Yup Link to comment Share on other sites More sharing options...
EricSchleien Posted August 7, 2020 Share Posted August 7, 2020 Kind of insane how well they did despite COVID this quarter. I was getting ready for a blood bath. It's amazing how much they can cut in costs. I bought a few more units last week and feel pretty comfortable continuing to build up my position over time. Does anyone have any idea who would take over after Karen Hathaway retires? I'm wondering if that could be a catalyst for them to sell their SS portfolio. Don't think they'll ever sell the club for personal reasons for the family but I could see there being a shot of them selling the SS portfolio when Karen retires. Thoughts or pushback welcome. Link to comment Share on other sites More sharing options...
BG2008 Posted August 7, 2020 Share Posted August 7, 2020 Kind of insane how well they did despite COVID this quarter. I was getting ready for a blood bath. It's amazing how much they can cut in costs. I bought a few more units last week and feel pretty comfortable continuing to build up my position over time. Does anyone have any idea who would take over after Karen Hathaway retires? I'm wondering if that could be a catalyst for them to sell their SS portfolio. Don't think they'll ever sell the club for personal reasons for the family but I could see there being a shot of them selling the SS portfolio when Karen retires. Thoughts or pushback welcome. Agreed. I thought that the club closure may burn $2-4mm a quarter. I figured that they may still have to pay employees despite furloughs and the club operations doesn't seem like a business that can be turned off. I was very surprised by the results. Seems like the self storage business barely had a blip. 1% revenue decrease. I was a bit annoyed that these guys aren't as good operators as the big operators like Public Storage, Extra Space etc. But this past quarter has surprised me at how well they have handled the whole situation. Link to comment Share on other sites More sharing options...
EricSchleien Posted August 7, 2020 Share Posted August 7, 2020 Kind of insane how well they did despite COVID this quarter. I was getting ready for a blood bath. It's amazing how much they can cut in costs. I bought a few more units last week and feel pretty comfortable continuing to build up my position over time. Does anyone have any idea who would take over after Karen Hathaway retires? I'm wondering if that could be a catalyst for them to sell their SS portfolio. Don't think they'll ever sell the club for personal reasons for the family but I could see there being a shot of them selling the SS portfolio when Karen retires. Thoughts or pushback welcome. Agreed. I thought that the club closure may burn $2-4mm a quarter. I figured that they may still have to pay employees despite furloughs and the club operations doesn't seem like a business that can be turned off. I was very surprised by the results. Seems like the self storage business barely had a blip. 1% revenue decrease. I was a bit annoyed that these guys aren't as good operators as the big operators like Public Storage, Extra Space etc. But this past quarter has surprised me at how well they have handled the whole situation. Any thoughts about what happens to the company post- Karen Hathaway retirement? Do you think they'd sell off the SS portfolio? Link to comment Share on other sites More sharing options...
Spekulatius Posted August 10, 2020 Share Posted August 10, 2020 Kind of insane how well they did despite COVID this quarter. I was getting ready for a blood bath. It's amazing how much they can cut in costs. I bought a few more units last week and feel pretty comfortable continuing to build up my position over time. Does anyone have any idea who would take over after Karen Hathaway retires? I'm wondering if that could be a catalyst for them to sell their SS portfolio. Don't think they'll ever sell the club for personal reasons for the family but I could see there being a shot of them selling the SS portfolio when Karen retires. Thoughts or pushback welcome. Agreed. I thought that the club closure may burn $2-4mm a quarter. I figured that they may still have to pay employees despite furloughs and the club operations doesn't seem like a business that can be turned off. I was very surprised by the results. Seems like the self storage business barely had a blip. 1% revenue decrease. I was a bit annoyed that these guys aren't as good operators as the big operators like Public Storage, Extra Space etc. But this past quarter has surprised me at how well they have handled the whole situation. I bet they did something along the lines of PPP loans to reduce cash burn. The club business has low margins and I think it mainly serves as a rent slave for the real estate operations. The self storage ops seems to be dong just fine. That said, they increased the distribution for the first quarter to $25 (from $23 last year) and then reduced it back to $23 for the second quarter. It’s not the end of the world, but COVID-19 does have some impact. FWIW, I operate under the assumption that Karen Hathaways retirement will have little impact and the family will continue to operate this. Link to comment Share on other sites More sharing options...
Spekulatius Posted September 12, 2020 Share Posted September 12, 2020 Anyone noticed that LAACZ has gone from “limited info” to “dark” status again on OTCMarkets. No idea why, as they published a quarterly report on 6/30. I noticed this when Fidelity pulled my GTC order a while ago. LAACZ flip flops from limited info to dark from time to time and Fidelity (and likely other brokers) will just pull any outstanding buy Order if they happens. https://www.otcmarkets.com/stock/LAACZ/profile Link to comment Share on other sites More sharing options...
thepupil Posted September 12, 2020 Share Posted September 12, 2020 I noticed this when Fidelity pulled my GTC order a while ago. +1 Link to comment Share on other sites More sharing options...
EricSchleien Posted December 5, 2020 Share Posted December 5, 2020 Perhaps I'm reading into this but wanted to hear some thoughts. First, there was this news release where the guy who helped bring LAACO into the self-storage business retired. The current CEO is pretty old and her husband also recently retired. I believe the rest of the family is on the Athletic Club side of the business and not the SS side (unless I'm wrong here). I think it is likely that after the CEO retires, they would sell the SS business. I have spoken to someone high up at the company saying that they hoped the SS business eventually gets sold as they believe it is worth significantly more than the stock price. Not going to go into the whole valuation thesis here Here's the link to the PRE: https://www.otcmarkets.com/stock/LAACZ/news/Stability-LLC-Announces-Retirement-of-Vice-Chairman-Frank-G-Hathaway?id=281045 However, tonight this was released: https://www.otcmarkets.com/stock/LAACZ/news/Stability-LLC-Announces-Election-of-Taylor-Hathaway-Zepeda-to-the-Board?id=282538 What stood out was this line: "Taylor Hathaway-Zepeda is a corporate attorney at a major Los Angeles law firm, where her legal practice focuses on public and private company transactions and corporate governance." Wondering if this is indicative of a possible sale of the company or the SS business here since I believe this is where the company eventually ends up regardless. Thoughts? Link to comment Share on other sites More sharing options...
Spekulatius Posted December 5, 2020 Share Posted December 5, 2020 I suppose Taylor Hathaway-Zepeda is related to the Hathaway clan, but I am not sure. I little bit of googling shows that she in the LA chamber of commerce to get her with Karen Hathaway and there are a lot of inter generational members in this institution. Taylor is 35 and will be around for a while, I think and so will be LAACZ. If they sell the self storage business they either take a huge tax hit or do a 1031 exchange which means they own a probably worse business without controlling it. If I were them, I wouldn’t sell. This business is as good and safe as it can get. The important part is that the year end distribution has been raised to $25 so things are going OK, it seems. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 6, 2021 Share Posted March 6, 2021 Quarterly tendies raised to $26/unit. https://www.otcmarkets.com/stock/LAACZ/news/Distribution-Announcement?id=292681 Link to comment Share on other sites More sharing options...
Spekulatius Posted April 1, 2021 Share Posted April 1, 2021 (edited) Y2020 10K is out. Earnings pretty much flat despite carnage with the clubs. Their Capex is now lower than depreciation so they delever the balance sheet even though leverage was small to begin with. https://www.otcmarkets.com/stock/LAACZ/disclosure FWIW, the supplemental filing is also interesting as it shows the controlling unit holders. Edited April 1, 2021 by Spekulatius Link to comment Share on other sites More sharing options...
jwelborn93 Posted April 20, 2021 Share Posted April 20, 2021 Did anyone attend the annual meeting yesterday and have notes? Link to comment Share on other sites More sharing options...
Spekulatius Posted May 21, 2021 Share Posted May 21, 2021 ^ I missed the annual meeting. The result speak for themselves: https://backend.otcmarkets.com/otcapi/company/financial-report/282848/content Earnings ~$40/quarter (almost $50 with tax basis adjustments), $26 distribution. Their leverage is getting lower with depreciation > Capex now after the buildout of the self storage units is mostly done. This is now worth almost 18% of my taxable portfolio (my IRA's are much larger than taxable portfolio and unfortunately, I can't hold it in those any more). It is not my best performing stock, but it's the one that made me the most in absolute $ with very low risk. Link to comment Share on other sites More sharing options...
thepupil Posted May 21, 2021 Share Posted May 21, 2021 Nice 11% of taxable here. Berkshire is 40%. as long as I have a w2 job, think my taxable will trend toward berkshire, #neversell Limited partnerships like LAACZ, some FAANG, and eventually...indices. Taxes and all that. Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 21, 2021 Share Posted May 21, 2021 3 hours ago, thepupil said: Nice 11% of taxable here. Berkshire is 40%. as long as I have a w2 job, think my taxable will trend toward berkshire, #neversell Limited partnerships like LAACZ, some FAANG, and eventually...indices. Taxes and all that. What happened to your REIT exposure? Link to comment Share on other sites More sharing options...
thepupil Posted May 21, 2021 Share Posted May 21, 2021 all those % are of my TAXABLE account. majority of my money is in tax advantaged accounts. of total portfolio, have about 45% in real estate, most of which are REITs, some of which are corps or partnerships. Link to comment Share on other sites More sharing options...
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