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An independent petroleum refiner which produces high value light products such as gasoline, diesel fuel and jet fuel.
HFC is being dragged down with the rest of the U.S. refiners for no good reason. Be greedy when others are fearful.
Chosen based on list of Price/Div/5 year dividend growth
Screen: Under $10B, Top 10% EBIT/EV, Z Score >1.81
Epa ruling should help profits.
Good dividend, Low P/E. meets both Benjamin Graham and Peter Lynch criteria for picking a stock. Graham # 58.3Lynch # 194http://www.gurufocus.com/dividend/HFC
Started a synthetic long by selling puts and buying calls at the the Mar 44.5 strike for an effective basis of $43.90. This stock has been on my Karma screen during the last couple weeks which is based upon 13 different fundamental and technical factors. HollyFrontier is flagging positive on all of them.
divy, looks cheap
cheap, Buy when there is blood in the street
Oil prices high, have been high.
looks like strong value from a beaten up stock
Egypt is a significant part of APA's operations.The turmoil in Egypt will reduce over time asthe military takes control again, ensuring noproblems with APA operations in Egypt.
Down to $40,30 nice opportunity to buy some more. Extra dividends $0,50 and normal $0,30 quarterly is 8% dividend in the short term.Real money pick.
the P/E ratio
At first glance this looks really cheap. Is it a trap?
best positioned refiner to reap benefits of shale boom.
- HFC's main economic moat is derived from its geographic locations allowing for feedstock advantages. And,- as the S&P's Equity Analyst - Tanjila Shafi points out: "HFC sells its products throughout the Rocky Mountains, Plains states and Southwestern regions, enabling them to procure higher product prices relative to other regions."- Management style appears to be "owner oriented."___________________________________________________________________________________________________Here's what Argus Research writes about HFC:"The Holly-Frontier combination has resulted in one of the industry's most complex refiners, based on the company's ability to process lower-quality crudes. We view this as an advantage in the current environment. HFC also has substantial location benefits - its refineries are well situated to take advantage of the significant discount at which WTI, WCS and other crudes trade relative to Brent. It also has access to cheaper black wax and Canadian crudes and can benefit from product shortfalls in PADD 2. Due to their location, HFC's facilities are also more insulated from declining U.S. gasoline demand. Like other refiners, Holly is benefiting from exports of refined product, particularly diesel and distillate. We caution, however, that refinery shares as a group are among the most volatile in our Energy sector coverage universe."In short, Holly is the type of company we favor. It has a strong management team with a record of good capital allocation, competitive advantages compared to peers (via the location of its refineries), and strong shareholder distributions, particularly dividends."___________________________________________________________________________________________________Here's what S&P writes about HFC's competitive advantages:"HFC's refineries are located in the Mid-Continent, Southwestern and Rocky Mountains regions, enabling the company to access discounted crude sources, including domestic, Canadian and other foreign crudes, allowing it to lower its feedstock costs. We believe that the company is poised to benefit from discounted WTI. We see its Cheyenne and El Dorado refineries benefiting from their access to heavy Canadian crude. Each of HFC's complex refineries has the ability to process discounted, heavy and sour crude oils into a high percentage of gasoline, diesel and other high-value refined products. In addition, HFC sells its products throughout the Rocky Mountains, Plains states and Southwestern regions, enabling them to procure higher product prices relative to other regions."and:"Our buy recommendation is based on our positive view of HFC's niche markets, its ability to source discounted crudes, and its higher than peer average implied dividend yield. We are encouraged by HFC's asset location, which we believe provides the company with an advantage given the increasing production coming from Canada and the shale plays. We are also positive on the high complexity ratings for each of HFC's refineries, enabling them to process discounted heavy and sour crude oils into a high percentage of gasoline and diesel. However, we believe that the acceleration of projects intended to alleviate the crude bottleneck at Cushing, OK, will narrow the spread between WTI and water-borne crudes, resulting in lower refining margins in 2013."S&P on HFC's margins:"For most of 2011 and 2012, HFC benefited from higher margins, as it has the ability to run on WTI-linked crude, which traded at a discount to water-borne crudes. However, given the acceleration in projects such as the reversal of the Seaway pipeline, intended to alleviate the crude bottleneck at Cushing, OK, we believe that the spread between WTI and water-borne crudes will narrow and lead to lower margins in 2013 and 2014 compared to 2012."S&P Star Ranking = [4****](1=lowest, 5=highest)S&P Fair Value Rank = [5+](1=most overvalued, 5=most undervalued)___________________________________________________________________________________________________Latest dividend news (by the Fool) :"The financial well seems to be gushing at HollyFrontier. The company has declared a special dividend, in addition to its regular quarterly distribution, for holders of its common stock. The special payout is $0.50 per share, to be distributed on June 10 to shareholders of record as of May 29. The regular dividend is $0.30 per share, and the dates are July 3 and June 12, respectively.""The regular distribution matches the company's previous one, which was handed out in early April. It annualizes to $1.20 per share, yielding 2.5% at HollyFrontier's current stock price of $47.28."(SOURCE: fool.com/investing/general/2013/05/16/hollyfrontier-declares-special-and-regular-dividen.aspx )Mike Jennings, CEO and President of HollyFrontier, commented: "Our Board of Directors continues their commitment to deliver shareholder value through both regular and special dividends. Today's announcement represents our ninth special dividend paid since our merger. Including today's announced dividends, our last twelve month cash dividend yield stands at 7.1% relative to yesterday's closing price of $48.43."( SOURCE: 4-traders.com/HOLLYFRONTIER-CORP-8307259/news/HollyFrontier-Corp-HollyFrontier-Corporation-Announces-Special-and-Regular-Cash-Dividends-16866540/ )
HFC and PSX. How can you go wrong with these two refiners? Especially now with all the cheap domestic oil around.
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