Detroit Bear
Deep value, special situations, long-term horizon, value

Lifetime Fitness: Moving From High Churn To Retention

Among the most powerful trends in American over the past few years, and probably the next several years, has been a movement towards health. Organic grocer Whole Foods (NASDAQ:WFM) has seen its sales surge, and athletic apparel giant Nike (NYSE:NKE) continues to post record North American results every year.

Gym memberships have move upwards at a similar pace. More than 50 million Americans now frequent gyms, and I think we should see nearly perpetual growth going forward. The gym space is extremely competitive, but let's take a look at the publicly traded Life Time Fitness (NYSE:LTM) and see if it is a good way to capitalize on this trend.

Life Time's Build Out...

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