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April 17, 2020
TheStreet: Planet Fitness Pumped Higher on Expected Reopening
Investors were pumping shares of Planet Fitness (PLNT) higher on Friday on expectations that the gym and fitness chain will be among the first allowed to reopen its doors under President Donald Trump’s guidelines for easing the lockdown amid the coronavirus pandemic.
Planet Fitness stock was up 10% at $55.11 in trading on Friday following Trump’s phase one recommendations to restart the U.S. economy that would allow it to open itself back up - so long as it adheres to strict physical distancing and sanitation protocols.
Somebody sure was pumping, and then they were clearly dumping.
PLNT closed at $50.10 on April 16th, reached an intraday high of $66.28 on April 29th (a 32% gain in just 13 days), then fell back to close at $47.92 today, netting a 4% loss for the round trip.
Meanwhile, my local Planet Fitness is closed, they have temporarily stopped charging my credit card, and I have not yet decided if I will cancel my membership when it reopens. The sooner they reopen and start charging me, the more likely I will be canceling. In any event, I will not be using their locker rooms and showers again. At best, I will be attending late at night when few are around, dressed ready to workout, and will be taking showers at home afterwards. Not quite the same experience.
Opinion subject to change at some point should a highly effective vaccine appear. Planet Fitness investors better hope that my thinking is the exception, and not the rule.
This is not investment advice.
Source Data:
Yahoo Finance: PLNT
1 comment:
I pulled the trigger today and cancelled my membership. I can't imagine safely cleaning all the surfaces and staying distant in a gym, even though PF has a plan. I don't know if virus particles are instantly destroyed on contact with a disinfectant, or if it takes time. Too many variables, too many people, too many virus particles for me.
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