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

To: Paul Senior who wrote (44269)	9/7/2011 6:19:34 PM
From: Difco	Read Replies (2) \| Respond to of 78627

Paul, I share your bewilderment about the refineries - VLO is the one that still jumps out at me with economies of scale. My only position in the field being Sunoco announced yesterday that they are exiting the refining business and I don't know where it will go from here. All along I have liked it for management's focused approach to downsizing and liquidating assets, I guess I looked at it as a liquidation operation but I never thought it will get to this. I like your approach to target at the lows - I don't know any other way with the cyclicals. I will be tracking Western Refining as it approaches lows - mostly for the spread benefits of the article I sent you earlier. A word that stuck with me from a previous post of yours was stagflation - do you know how refineries performed back in the 70s?

To: Paul Senior who wrote (44269)	9/7/2011 9:41:43 PM
From: Keith J	Respond to of 78627

Paul, A few comments on refining. First, look at the major increase in CAFE mileage standards coming. It's not real clear how the automakers will achieve this, whether through more hybrids, more diesel engines, lightweighting, NG-fueled vehicles, etc. but the net result - even though it will take time - will likely be less oil being refined. And unlike Europe, US refineries are set up to produce as much gasoline as possible instead of diesel. To changeover the refineries would take significant capex, which would be hard to justify. Especially given IRRs in E&P segment with crude as high as it is. May be ok to hold the better refiners but hard to justify adding new funds to the sector, IMHO. But like you, I've been wrong many, many times before. KJ

To: Paul Senior who wrote (44269)	11/3/2011 5:45:49 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 78627

NS Added as Top 10 Energy Dividend Stock With 7.58% Yield NuStar Energy L.P. ( NYSE: NS) has been named as a Top 10 dividend paying energy stock, according to Dividend Channel, which published its weekly ”DividendRank” report. The report noted that among energy companies, NS shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent NS share price of $57.79 represents a price-to-book ratio of 1.4 and an annual dividend yield of 7.58% — by comparison, the average energy stock in Dividend Channel’s coverage universe yields 4.4% and trades at a price-to-book ratio of 2.5. The report also cited the strong quarterly dividend history at NuStar Energy L.P., and favorable long-term multi-year growth rates in key fundamental data points.