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Zips carwash(tunnel / express)

Rfreeman

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Lol. I look at it as I am in the tunnel business now. 😆
HAHAHA! :p
For those of us that don't want to risk the 4-5 million or more to get into it, this is a good way to enter the market!
 

washnshine

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Lol. I look at it as I am in the tunnel business now. 😆
Yes. There are days I’d prefer being in the tunnel business this way rather that looking after three if my own.
 

Roz

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Called it:

Yup. They are selling about 37M shares at $15-$17 in the next few weeks. Symbol MCW. The shares represent a small fraction of the outstanding shares so current Equity firm owner will keep control and most of the shares. I believe they are being valued at $5B. Will be interesting to see how the market views the offering.
 

Greg Pack

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I know someone that is involved in express acquisitions. The feeding frenzy will continue for the foreseeable future. Private equity is attempting to amass enough locations to sell to bigger private equity or go public. Top dollar is being paid for good sites. Chetah you ought to at least hear their offer. If you want to stay in operations they may make a place for you and also as a shareholder. Maybe you can entertain retaining the property and getting a land lease payment- mailbox money for decades would be pretty sweet.
 

MC3033

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They are valued at 100x adjusted ebitda (after numerous expenses are backed out) Time to sell all our washes if that is the going rate now!
 

Rfreeman

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100 times Earnings before Interest Taxes Depreciation Amortization.....

Real layman's terms....its stupid how over valued that stock is...
 

Roz

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Will be interesting to see how long the stock stays above the IPO offering price of $15. The Mister tunnel near me is always empty with the staff standing around waiting for customers. Might be due to the other tunnel less than 1 mile away that does a much better job cleaning your car (a family run tunnel).

 

Rfreeman

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And according to their market cap $4.4B ÷ 342 locations that car wash is worth on average approx 12.8 million of course take out some "good will" and let's say "bricks and sticks" worth $10 million....I think I'll watch this stock go up a little here in the next 6 to 9 months then buy short positions for the fall
 

Roz

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And according to their market cap $4.4B ÷ 342 locations that car wash is worth on average approx 12.8 million of course take out some "good will" and let's say "bricks and sticks" worth $10 million....I think I'll watch this stock go up a little here in the next 6 to 9 months then buy short positions for the fall
Either the stock will crash or all other tunnel sellers will be upping their asking price significantly. MCW is doing a smart move to use the cash raised to pay down the debt.
 

Rfreeman

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Either the stock will crash or all other tunnel sellers will be upping their asking price significantly. MCW is doing a smart move to use the cash raised to pay down the debt.
Oh agree 110% bc I figured as low as interest rates are today that is fuel driving these frothy valuations in stocks and real estate both residential and commercial. This isn't 2003 - 2006 again back then you had terrible underwriting with greedy border line predatory lending driving up RE prices. Today you have banks that are very very well capitalized (tremendous cash on hand i.e. their books) with tigther lending standards for most but not all.....low interest rates are driving this chaos.

From what I heard, another IPO for a tunnel company is in the works.....
 

washregal

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Just had a ModWash open near me in MD. Their website says they will have 54 locations by end of 2021 up and down the East coast. They spent a $hit ton of money on this location. They must have deep pockets, and know something I do not.
How close was the ModWash location to your place? How much did it effect your revenue since it has been in by percentage of gross sales?
 

washnvac

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It was 3 miles. No effect on sales. We were already running high single to double digit increases. I actually sold the location last October while things were still on a roll.
 

traveler17

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A couple of weeks ago, I got a call from a "Mister" rep in Austin who told me they were going to be in "my area" and would like to meet with me about discussing possibly buying Cheetah. Told them I wasn't interested at this time. From what I've read in the publications, they're buying up everything they can get their hands on.
Just out of curiosity why not listen to what they have to say. Might give ya more than expected. Especially if they have deep pockets. Guy 2 blocks from me sold his million dollar storage units for $3 mil in a small town from couple brothers buying them up
 
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