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

To: Spekulatius who wrote (61983)	5/14/2019 7:54:47 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78753

MPC. I've been accumulating a few shares recently. MSM is expensive to me based on metric I use for purchasing stock of a distributor. Shares do seem reasonable to me though for a possible reversion-to-mean based on company's historically good results. -- MSM looks now to me like distributors Fastenal and Grainger when their stock got relatively low. (I have positions in both.) I will try also with a tracking MSM purchase.

To: Spekulatius who wrote (61983)	5/17/2019 9:09:44 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

I think the two refinery plays MPC and PSX (owned by BRK, but reduced to Tracking position ) because they are really midstream and logistics assets in disguised (60% of the cash flow, the remainder of 40%- is from refinery ops). Both PSX and MPC have their captive MLP where they can monetize assets for 9-10x EBITDA, while they trade at 5-7x EBITDA. if they can rinse and repeat this capital recycling again and again and new investment, it gets quite interesting from a value perspective. WEB invested in PSX in 2015 and probably paid around $80 for its shares, which are trading now at $84. The stock seems cheaper now than it , maybe a value trap? Sharecount went from 550M shares ~450M shares now. MPC is now larger due to the Andevor takeover, but is now also aggressively buying back shares.