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

To: Paul Senior who wrote (45114)	1/9/2012 12:42:03 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78748

re MPC - bought some at 30.32$. I think TSO problems are mostly due to dislocations in CA and won't affect MPC too much. I like their refinery network that is amongst the most efficient ones in the US, their access to cheap crude grades from Bakken and such (I expect to see a cost advantage even after pipelines are in place to move the oil away from there, albeit smaller) and their dividend and low leverage. MPC just completed a significant investment program, so they should be able to generate FCF in excess of earnings for a few years. They also have logistics and pipeline assets that can be floated as an MLP at favorable conditions and that should be worth 2-3B$, imo. The above points should compensate from the risk of an inherently volatile business hopefully.