Calumet Specialty Products Partners, L.P (CLMT)

This company has incredible debt and very little cash on hand, but is paying 11.00% in dividends! That does not seem sustainable.

Half a bill of debt, with no cash on hand means they can't keep their dividends going much longer.

They just returned to profitability this past qtr, due to low oil prices. As soon as oil prices go up, this maker of petrol products will see their profit margins diminish and bye-bye (not buy! buy!).

High Safe Yield Play

NICE FAT DIVIDEND

they generate enough cash to pay 2.8x the 15% yield!

A huge dividend that cannot be cut

Nearly missed covenants in 3Q. 4th Q demand for products are weak. Paid too much for recent acquisitions. No crack spreads. Cash burning machine.

The pitch for this stock can be found on the Stinky Feet discussion board at http://boards.fool.com/Message.asp?mid=27337875 . Stop by and let us know what you think of this stock.

High Dividend-Refiner play.

Low cude prices are going to help this company get the debt off the balance sheet. Specialty fuels have higher margins than gasoline.

Not buying at this price is ignorance

Wish I could buy a load of this now!

Its a gamble, I think it has a decent chance to turn around.

CAN ONLY GO UP

Offers excellent yield. Future demand for products

5 Star/Small cap/Pays dividend

An excellent earnings report, much higher than the eps, and a little ahead of last year. Plus oil price inching down should give it a boost

A small refiner. Seems to be a very well run company. All the refiners are getting hit hard as the price of oil has skyrocketed. The price between what a refiner pays for its oil and what it sells its finished products for is called the “crack spread.” Since the price of oil has risen faster than they can raise their prices on the finished product, their crack spread is getting squeezed and net profits have fallen drastically. Management has already begun incremental price increases on their finished products. Their shares have fallen from about $55 down to $12 a couple of weeks ago. I was getting ready to buy then but the price shot up to $17 because of massive insider buying. If you go to a one of the stock tracking pages (msn, yahoo, etc.) and look at the insider buying you will see what I am talking about. This fact made me even more excited than I was before. I decided to wait a few days in hopes that this would subside and the price would come back down. So far I have been right; the price is now around $12 per share and I am looking at buying. Once they are able to raise their prices and increase their crack spread, the stock price should rebound to at least $30, if not more. That would be a doubling of your money and I don’t see why this could not happen in less than two years, giving you a very good return. What I really like about this stock is its current dividend yield. They are currently paying $1.80 per year, which at $12 per share would be a yield of 15%. They recently lowered their dividend from $2.56. There is no guarantee they will not lower it again, but I think when they get their profitability back there is a good chance they will raise it back, hopefully to the $2.56 range. This would be a yield of 21% if you lock in at $12. If I am correct, then this is a home run all the way around. I am extremely excited about this one.

Oil refiners are beat down but eventually oil prices will settle. VLO, TSO and others are more replaceable in the marketplace (oil producer refiners and offshore refining) while CLMT seems to have a niche in specialty products (products for solvents, paints, lubricants etc.) and longstaning customer base that can insulate them. Recent insider purchasers nice to see.