Rondeau said Planet Fitness has five locations already reopened. Customers will find additional sanitation stations located throughout their gyms and increased cleaning efforts.
So far, Rondeau said he's been encouraged by the reopening efforts. He said they've only seen a slight bump in cancellations, and franchisees are finding landlords and lenders accommodating.
Rondeau said he's not worried about companies like Peloton (PTON) . He said in-home alternatives are great for some, but most people prefer a real gym experience.
We looked at the charts of PLNT back on April 1 and concluded that, "PLNT is likely to retest the March nadir and if the Point and Figure chart has it right, we could see lower lows being made in the weeks and months ahead. Avoid."
PLNT was stronger than anticipated with a rally carrying to the end of April so let's check and see the latest charts.
In the daily bar chart of PLNT, below, we can see that prices stopped just short of the underside of the declining 200-day moving average line. In the past two weeks PLNT has weakened and closed back below the declining 50-day moving average line.
The On-Balance-Volume (OBV) line peaked in early April ahead of the price peak and its decline tells us that sellers of PLNT have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal and is now just slightly above the zero line. A new outright sell signal could be seen soon.
In the weekly bar chart of PLNT, below, we can see that the longer-term picture is not bullish. Prices are below the declining 40-week moving average line where the bounce failed.
The weekly OBV line is still pointed down from its February peak and the MACD oscillator has yet to generate a cover shorts buy signal.
In this daily Point and Figure chart of PLNT, below, prices are pointed lower with a potential target of $42.
Bottom-line strategy: With many businesses it remains to be seen how consumers will respond and how safe they feel and whether they can afford it again. Despite gaining weight since March 7, I would continue to avoid the long side of PLNT.