Sunoco, Inc. (NYSE:SUN)

Definitely consolidation in this industry in the near future.

Because they do not subsidize with foreign oil and crude is used in many more things than autos

Here come the boogiemen!
CLEAN ENERGY!
HONEST TAXES!
PUBLIC OPINION!
GAS PRICES!
Oil, all of oil, is singing its swan song. This stock will drown in ethanol.

These guys aren't going away, and neither is their dividend. They also barely wavered during the last pullback. I feel confident saying this refiner and marketer of gasoline is a safe bet to add to a portfolio.

Looks like high alpha, low beta. Perhaps not that 10 bagger you want, but more of a buy some now, and buy some later type of investment.

And of course a look at the numbers shows plenty of reason to outperform the S&P over 'any' 5 year period.

Trendspotter

ceo has been selling off assets and thinning workforce,she is from shell oil and has a reputation for setting up a merger or sale.

Breakup value is significantly higher than current trading, would be a lovely target for an LBO or hostile takeover.

Just not feelin' it.

You know when you go to Disneyland and you get that flutter in your heart and your eyes light up with excitement? Ya, me neither as I can't stand the crowds there. But I could imagine that if I actually had that feeling it would be much the same as I feel for Sunoco (SUN) right now.

Refiners are truly interesting creatures, they can be cash cows for several years and then get destroyed and loose money with the best of them. Check out some past stats. on SUN to see what I mean:

2006: Revenue of 36B, EPS = 7.59
2007: Revenue of 42B, EPS = 7.43
2008: Revenue of 52B, EPS = 6.63
2009: Revenue of 28B, EPS = -3.16 (yes, negative!)
2010 Est.: 1.07 EPS
2011 Est.: 2.67 EPS

Currently all refiners have been getting beat with the ugly stick on a daily basis, the sector has been beat up and pushed around for the better part of the last two years and their stock prices reflect this tend. Crack spreads are still at extremely low levels, thus profit margins are in the trash (see here for more details on spreads/etc.: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=219753&t=01002756778892789413). However, this trend will only last for so long and the end is quickly approaching.

Yes they have some debt, but that is nothing to be too concerned with. All they have to do is hold out for a few more quarters at most before the money tree returns and earnings flourish once again.

This likely won't be a quick play, but in 2-5 yrs. when SUN is earning 3,4 even 7 dollars a share, you'll be happy you scooped some up when you did. Patience is key.

I do not own yet

Can be bought at this point for 6% of revenue and roughly 2.5 times cashflow

I liked the entry price when I picked this long shot.

U.S. refineries will become critical when China and other emerging countries begin to buy up the supply of oil in the world.

Fuel for a recovering economy will be needed

Value Pick. Earnings remained good during recent downturn (with some small losses). Dividend has remained solid. I'm buying and sitting.

Disclosure: I am a shareholder and bought SUN today

Great value buy right now. Could have some dips, but an excellent long term play in my opinion. Bought about $5K worth in my Roth IRA, my second biggest holding next to Altria Group. They have an LARGE and thorougly established network of businesses and energy related operations. Even if they underperform peers to some extent, there is value to be had at the current price per share.

very solid co. with good mgm.

A beaten down puppy that I think will do better in the longer term. I'm sure refiners like SUN, VLO and TSO will come on once oil prices start to rise.

oil is bound to go up and the Company gives Good dividends.