Implied Value

Update On Town Sports: Competition Elevates Risk

A lot has happened since I first featured Town Sports International (NASDAQ:CLUB) on Nov 12, 2013. This article will be provide an update on new developments as well as my revised view on the stock. In short, while I believe shares are still worth around $15-$16 a share, competitive pressures have caused me to temper my optimism.

In my previous article, I laid out 3 catalysts that could propel the stock price. Since then every one of them were realized. The company refinanced, initiated a regular dividend, and sold its Manhattan property. Everything was working and the stock reached almost $15. That's when Town Sports began its precipitous decline that is still ongoing. After giving poor preliminary...

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