Travel Centers of America is failing and will declare bankruptcy within five years.

No argument on that.

The Price/Earnings ratio is a good barometer of relative stock value. Historically, the PE ratio in the stock market has had an average and a median of around 15. The PE ratio just before the Great Depression was 32. The past *10 year average* PE ratio is now 34. We’re in a huge bubble from easy Fed money and the consequences are both dire and just around the corner.

 

TA’s stock price is down 65% from five years ago.

TA’s Price to Earnings is 8.75. PE for the market as a whole is around 34, meaning that even with historically loose monetary policy causing a rising tide that lifts all boats, people still aren’t interested in investing in a laggard truck stop stock.

TA has limited cash flow yet took on $200 million dollars of debt last year after they weren’t able to raise enough cash issuing stock that had its initial offering price reduced due to lack of interest.

Historically, stock analysts only give “sell” advice 6% of the time. Does that make sense? Do stocks go up or sideways 94% of the time? Of course not. Analyst advice is worth what you paid for it.

Why Wall Street analysts almost never put 'sell' ratings on the stocks they cover

These guys are over leveraged and in serious trouble.