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Strategies & Market Trends : Value Investing

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To: NikhilJog who wrote (48781)	7/15/2012 10:47:42 PM
From: Spekulatius	Read Replies (2) of 78752

PSX - your earning estimates are a bit high and I think the value for the midstream operation too, even if they completely spin off their midstream into the MLP, they won't get 17x distributable cash flow. The valuation for the chemical ops sound about right with 10x earnings, although I would not buy an basic chemical operation at 10x earnings (which I suspect are closer to peak than trough). I don't think their refinery ops are best in class either...i guess they have trouble getting over 45$ for the pieces, if they were able to sell out ( i think they need to wait 2 years for taxation reasons after a spinoff, but I could be wrong). I doubt an analyst report with a high SOP value will do much for the stocks, it's quite well researched actually.

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