StarTribune.com
prairie021008.box

Home | Business

Taking Sides

Last update: February 9, 2008 - 6:46 PM

Taking Sides

Investors are staking out very different positions on Life Time Fitness, which operates 71 fitness centers nationwide and reports earnings on Feb. 22.

The bulls say the company's large-format fitness centers generate higher margins than do its competitors, and appeal to upscale consumers more insulated from economic hardships.

The bears say the company lacks geographic diversification, is overly dependent on outside financing, and the stock trades at a rich premium to that of other fitness club operators.

The bottom line: Life Time faces increased competition in its largest markets, Minnesota and Texas. Membership growth has slowed, yet earnings have grown by 20 percent or more for 14 consecutive quarters.

Recent Business stories

Heinz to report its second-quarter results Tuesday - February 9, 2008
Heinz to report its second-quarter results Tuesday - H.J. Heinz Co. is scheduled to report earnings for its fiscal second quarter on Tuesday before the market opens. The following is a summary of key developments and analyst opinion related to the period. More

Comment on this story   |   Be the first to comment   |  Hide reader comments

Subscribe

Blog: Patent Pending

Lights out at U energy conference. Irony police notified.

Just as Lawrence Kazmerski, a top official at the National Renewable Energy Laboratory, was about to give the keynote address at the University of Minnesota's annual E3 conference at the RiverCentre in St. Paul, the lights went out, bathing the audience in darkness and a deep sense of irony.

Recent posts