Investors looking for value stock investing opportunities with catalysts ahead will be interested in Jorge Robles' perspective on UK low-cost gym operator Gym Group. The company has a reasonable competitive position, a misunderstood path to profitability, and an attractive free cash flow yield. Mike and Jorge explore the catalysts to realize the stock's value, competition within the industry, the impact of private equity ownership on companies, and the role Brexit might play in weightlifter behavior.
Topics Covered: 2:00 - Gym Group's business model, advantages, investment opportunity. 5:00 - When will return be realized for investors? What's the pivot point? 7:30 - New location logistics 10:15 - What's the growth story? Why is it growing so fast? 13:30 - Where are the competitors? 17:45 - What's the time frame of this opportunity? 24:30 - Private equity owned gym. 26:45 - Earnings as potential catalyst 29:30 - Comparison to Planet Fitness 30:00 - Brexit effects