Pentor Recreation

Owner and operator of RV parks |
Camper's Corner - London |
Rolling Hills - Ottawa

[Pentor Recreation @PentorRec]

Pentor wants to buy underperforming RV parks below replacement cost and through a long-term perspective and ROI focus dramatically improve financial performance.

[Pentor Recreation @PentorRec]

@ErinDGreenfield Fascinating story. Thanks for sharing.

[Pentor Recreation @PentorRec]

@ErinDGreenfield More rate collusion here given the structure of the market.

But I agree, the nature of the business leans towards pricing cuts. Slowly Canada will converge with the rest of the world.

[Pentor Recreation @PentorRec]

RIP Charlie Munger

One of the sharpest minds and deepest thinkers I've come across in my business career.

I'm so much better off from being exposed to him.

Thank you Charlie for being so willing to share your knowledge with us mere mortals.

[Pentor Recreation @PentorRec]

@ErinDGreenfield @CDNAffairs I wonder what percentage of those 98K vote Liberal???

[Pentor Recreation @PentorRec]

@ErinDGreenfield Congrats. Her parents gave her a great foundation, she'll do great.

[Pentor Recreation @PentorRec]

@ErinDGreenfield @WilliamGreen72 I like him on the TIP podcasts. He's done some good interviews with great investors. Been meaning to read that book.

[Pentor Recreation @PentorRec]

@realEstateTrent Envy.

My neighbour got x.

The place down the street sold for y.

So I deserve x or y

[Pentor Recreation @PentorRec]

@joshkiefercpa It depends what you're forecasting but in general I'd add top down macro forecasting is way less accurate.

[Pentor Recreation @PentorRec]

@roblabonne I can't remember who said it but I've always liked the quote:

"I'd rather own a small part of a cruise ship than all of a dingy."

[Pentor Recreation @PentorRec]

@Monopoly_Bros_ Increasing as many social media personalities are becoming less trusted as it becomes obviously they are paid for their recommendations.

People you know are still the most trusted source of information.

[Pentor Recreation @PentorRec]

@YieldOnCostSTR Are STRs & hotels at least somewhat different assets classes?

I get the need to maximize pricing (not achieved at 90%+ occupancy).

I'd guess part of hotel logic is service requirements at 90% is not efficient. This might not be the case with a STR?

Maybe other differences?

[Pentor Recreation @PentorRec]

@joshkiefercpa Good tweet.

One key point I'd add: the industry you choose to operate in has way more impact on capital efficiency than your actions.

A software co. has a way better chance of having a high ROI than a steel co.

If you've already selected a business your points are quite valid.

[Pentor Recreation @PentorRec]

@GeoffStretch Airline pricing software at its best 😮

[Pentor Recreation @PentorRec]

@realEstateTrent I find it way more valuable for staying in touch with people you've met in person than Twitter.

My posts on LinkedIn get more feedback than anything I do on Twitter because way more people I've met know (and hopefully respect!) me.

[Pentor Recreation @PentorRec]

@ibuyrvparks You get the customers you deserve.

Have a good product and provide value for money (not a low price) and the "right" customers will find you.

[Pentor Recreation @PentorRec]

@joepohlen Great idea.

Aptitude tests are one of the few proven ways to consistently find talented workers.

We've used Bryq to do our employee testing but there are a variety of providers that offer easy online options.

[Pentor Recreation @PentorRec]

@Stef_McConnell I haven't come across any yet but my initial loans were done with Canadian banks.

I'm looking at other options when the term comes do so might have a better feel in a year or so.

[Pentor Recreation @PentorRec]

Debt enhances return-on-equity (ROE).

Lots of people have written about the optimal level of debt to maximize returns & minimize risk.

One item I'd highlight is how debt limits your flexibility to pursue attractive growth projects.

1/4

[Pentor Recreation @PentorRec]

@SecretCFO How much capital is employed?

Likely to business A.

[Pentor Recreation @PentorRec]

@ibuyrvparks You could have a pretty good reality TV show at most RV parks 😂

[Pentor Recreation @PentorRec]

This scenario is a good example of why it might make sense to have much lower debt initially at a turnaround RV park.

Gives way more flexibility to develop & grow a park quickly.

Then, when the park is stabilized, you can put on the proper amount of debt to optimize ROE.

4/4

[Pentor Recreation @PentorRec]

So if we have an attractive capital project we may not be able to pursue it because of the covenant.

A hypothetical example: if paved patios are a 40% ROI project & cost $1K each there's no way we could do a huge amount of sites in one year.

We'd violate the covenant.

3/4