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

To: NikhilJog who wrote (48781)	7/15/2012 10:20:20 PM
From: Paul Senior	1 Recommendation Read Replies (1) \| Respond to of 78751

PSX, Might be a buy on some of the metrics I use. On sum-of-parts analysis, I don't know. I assume Buffett surogates who bought PSX also did a sum-of-parts analysis and used the result to to influence their buy decision. So your analysis may be correct. I don't know. I don't see the stock as a buy for me right now though vs. other stocks I am interested in. I would like to see a little more public history with PSX, and see how their change in business model (moving away from refining) works for them.

To: NikhilJog who wrote (48781)	7/15/2012 10:47:42 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78751

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.