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

To: Elroy who wrote (20297)	7/18/2014 12:02:45 PM
From: architect*	Respond to of 34328

CVI Energy with a market cap of $4.24 billion, and Enterprise value of $3.8 billion has a low PE, $966 million in cash (11.15 / share in cash), and $677 million in debt. The special dividend amounts to about 18% of their cash balance. My guess is that CVI Energy doesn't anticipate near term capital investment expenditures, which justifies the special dividend. I'd say yes on the regularly schedule dividend, as their existing cash balance supports both the special and regular dividend. CVI looks like good value, although the profit margins are lowish 7%, the cash balance to market cap is high. Certainly looks good for further research for a short or intermediate investment. I'm not savoy on refinery valuations, and reviewed CVI quickly yesterday, so don't quote me on the numbers.

To: Elroy who wrote (20297)	7/18/2014 12:15:31 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Re: CVR Energy, Inc. (CVI) CVR Partners, LP (UAN) I own UAN and they also have had a special dividend. This is a Carl Ichan controlled company as he owns over 30% of CVI. As he controls the BOD, CVI has had a few special dividends during his ownership period. Ichan represents the shareholder's interest and with these highly cyclical companies, as/when the FCF "flows" he sees that earnings are given back to the shareholders. I missed buying CVI below $35.00/share earlier this year, but loaded up on UAN at $16.00/share and lower. I like UAN for their fertilizer and specialty chemical exposure. I recently sold out of OCIP and move the proceeds into more UAN at $17.28/share. FWIW, I was originally attracted to CVI (and their sister company UAN) after discovering Carl Ichan's huge stock position. You might want to check out the insider holding of other Carl Ichan companies. He has a good track record of gleaning out shareholder value. EKS