Calumet Specialty Products Partners, L.P (NASDAQ:CLMT)

CAPS Rating: 4 out of 5

The Company is a producer of hydrocarbon products in North America. Its business is organized into two segments: specialty products and fuel products.


Player Avatar NolAloha (68.36) Submitted: 4/25/2008 12:32:19 PM : Outperform Start Price: $11.26 CLMT Score: +72.94

All refiners have been hit by reduced crack spreds. Calumet in particular has been impacted by a poorly managed upgrade to their Shreveport Refinery. The work is completed and the refinery is coning back on line. the Company is awfully close to violating convenents on it's debt, and has reduced dividents to compensate. However, at the current low price of the stock, the dividend rate is about 12 percent, withe the price at $14/ share.

Expect a lot of volitility, with crack spreds fluctuating, and demand dropping for specialty hydrocarbons. But net net, there is a 50% upward potential on the stock,and only about 20% downward potential.

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