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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (16523)	8/7/2013 12:56:24 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Re:CLMT I am looking to re-enter the position. Sold it earlier this year at $34.50/share. My original buy was in January at $31.00/share. Long term I like their partnership w/ MDU to build a diesel refinery in South Dakota, MDU is a good suppler/customer to have and volumes will grow over time generating increasing cash flows. So, I like them to build their distribution business. The problem is they need to somehow get away from hedges but I suspect that is the nature of the business. They took a one time unrealized loss on their hedges resulting in a $4mln charge this quarter. I am betting that sometime down the line, MDU will help with supply constraints so the size of hedges may not be necessary. In fact as a partner, MDU may assume all the commodity risks while CMLT will focus on distribution. We really will not know until the refinery is operational. EKS