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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Difco who wrote (43180)	7/5/2011 12:08:55 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78622

"I find it interesting that an institutional investor would buy that low." Is there a typo? Do you mean "buy that low" or "buy that now"?

To: Difco who wrote (43180)	7/10/2011 3:06:29 PM
From: Difco	Read Replies (5) \| Respond to of 78622

To all; I was looking at the refinery sector and I thought Sunoco (NYSE:SUN) is an interesting play. Price of $42.86 (or $5.2b) of which cash is $12.22 (that has grown from $240m to $1.5b in 3 years). The past 3 years the company has been shedding affiliates and focusing its business - lastly spinning off their Coke business (interesting fact is that they put the ex-GM CEO Fitz Henderson at the helm of that division). The CEO, Lynn Elsenhans, is a former executive at Shell and after listening to some of the investor calls and reading the annual reports it seems that she is the right person to stream-line operations. Interesting fact is that in '08 when the last bull run in the oil market happened, the business had profits of $776m compared to last year's of $234m. The hot stock this year in the sector has been Western Refining (NYSE:WNR) and the top player is Valero (NYSE:VLO), which have returned 95% and 13%, respectively. SUN is up 6% - that's price return only. Dividend of $0.15 was reduced from $0.30 a couple of years back, but expect to raise it in the future. We've had a lot of discussions on energy here, so I thought a different play might bring interesting discussions. Margins in this field are definitely not as fat and it's also a cyclical business.