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

To: Paul Senior who wrote (52439)	11/6/2013 6:52:23 PM
From: E_K_S	Read Replies (1) \| Respond to of 78704

Calumet Specialty Products Partners LP (CLMT) - upped my shares by 25% LGI Homes (LGIH) Initial Public Offering LGIH - New IPO to price tomorrow CLMT is now a 1% portfolio position. Still positive about the value proposition in this one. It is a specialty refiner in a JV deal w/ MDU to gather and process MDU's oil (from one of their subsidiary companies). I have been taking proceeds from my MDU sales and buying back into CLMT. Lots of potential expansion for MDU to bring together CLMT's assets and their own into a combined drop down MLP similar to what DVN is doing. MDU has a lot of the pieces to do this (huge NG storage assets, producing Oil & NG wells, acreage to develop, pipelines). I see MDU holding as much as 70% ownership of the new MLP company and merging CLMT w/i that operating company. It is just speculation on my part but makes a lot of sense when you look at what MDU currently owns. Their diesel refinery JV deal w/ CLMT could be just the first of a much larger proposition. I plan to start a small position in LGIH tomorrow if I can buy at it's IPO price or lower. I figure w/ all the excitement around Twitter, this one will get lost in the shuffle. They sell and finance brand new starter homes in AZ, TX, FL and Georgia. Their business plan looks pretty good and could be a better product than a previously owned home and/or a fixer upper. My position will still be small either a 0.5% or 1% portfolio position. EKS