Another upgrade to Barclay's upgrade from last week, On June 1, 2015 ValuEngine upgraded ALON USA ENERGY INC ( ALJ ).
I still own a ton of ALJ...Sometimes things that are obvious are right in front -----It doesnt take a genius to figure out that DK eventually is going to take ownership of this company...The only question is at what price? But aside from that, just the combination of the two companies should propel both co's shares higher...Thats obviously the point , to streamline the two and have a more efficient and profitable combination....I see ALJ in the mid 20's...One other factor, - its always possible that another might come in and bid...TSO and even HFC - but I think TSO could still make a move....Either way, this is a dynamic combination and will only enhance the value of the combination.....JMHO D
17 has been resistance but the circumstances with the DK stake and now Cohen's Point Seventy Two buying approx 5% should keep things interesting. Think we could see twenty should be fun
There is no memory in history so it does not necessarily point to lower ALJ. On the contrary Delek can be the catalyst that raises the price above 20's which I believe will happen. Likely in the future $27-$32 range.
It appears that Delek owns around 50% now, will have five seats on the ALJ board and if you read the statement below, will have the option to purchase the remaining 50% interest in the next year. Read below:
'Prior to commencing negotiations with Alon Israel, Delek US entered into a stockholder agreement with Alon USA. During the first year following the closing of this transaction, the stockholder agreement allows Delek US to acquire up to 49.99 percent of the outstanding shares of Alon USA at its discretion, with additional ownership above this threshold subject to the approval of the independent members of Alon USA’s board of directors. The stockholder agreement will expire on May 14, 2016, and Delek US will then have no further restrictions under this agreement related to increasing ownership in Alon USA.'
Kind of hoping we finally hit 20 this year!!!
OK, Maybe trying to drive price down in anticipation of purchase. ""On April 14, 2015, Delek US Holdings, Inc. entered into a definitive stock purchase agreement with Alon Israel to purchase approximately 48% of the Company's common stock. This transaction, which has received Hart-Scott-Rodino clearance, is expected to close as early as May 12, 2015. I am excited about the opportunities this transaction could provide."
There should be a nice pop in price after May 12, 2015. "Alon has scheduled a conference call, which will be broadcast live over the internet on Friday, May 8, 2015, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the first quarter 2015 results. To access the call, please dial 877-407-0672, or 412-902-0003 for international callers, and ask for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through May 22, 2015, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13605356#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. This is definite buy at these prices around 16 as this stock could easily hit $25-$27. Delek I am sure thinks it can go higher then that. Load up.
Why? Do not understand why stock continues to go down- oil prices going up. A lot of manipulation, I am holding. I have a lot of ALJ and it is punishing me now, but I am holding. Any clues? Feel free to respond.
I can see ALJ shares in the mid to high 20's in the next 12 months...I don't care what the analysts say.This is going to be a good combination....I have a lot of ALJ and will just hold....D
agreed the price action is very odd, wonder whether it has to do with all the short interest or now DK has essentially locked up the ALJ with the option to purchase remaining shares. DK seems to be a well run company. More patience ....
Alon Israel sells its remaining stake to DK for 16.98/share plus a promissory note. One would think that DK would not be paying almost 17/share unless they thought that eventually ALJ wold be worth substantially more? Plus, instead of an investment group ALJ is now linked to an actual entity that is in the same business. IF combined ( which looks very likely down the road ), ALJ should be substantially more valuable. And yet the shares keep sinking....Very odd.....Time will tell. Holding all of my ALJ shares for the long term...I think this is still very much under the radar.....D
Just curious about what you think of this deal? I own a lot of ALJ...I will make money on it ..no doubt...Its a bit out of the norm because they are in fact not selling the company...Not yet anyway....Just up to 49% or so....Seems like we will get 16.98? Is that your take?