Calumet Specialty Products Partners, L.P (CLMT)

NolAloha (52.14) Submitted: 4/25/08 12:32 PM : Start Price: $13.18 CLMT Score: 6.42

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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