Before the York Town acquisition and subsequent dillution, WNR had 66 million shares outstanding, no debt, and about $200 million in cash. Now WNR has 88 million shares outstanding, $1 billion in debt, and almost no cash.
$30/share of the old WNR * 66 million shares is 1.98 billion. Minus the $200 million sitting in bank gives valuation of $1.78 billion.
$10.60/share of new WNR * 88 million shares plus $1.055 billion in debt is $1.987 billion.
The old WNR didn't trade over $30/share until crack spreads went to $20 barrel in early 2007. When crack spreads were around the current in 2006 it traded in a 18-25 range.
I'll let you come to your own conclusions as to whether WNR will be good from here. VLO MRO TSO FTO look better on any dips.
However if they could get some serious value out of Yorktown, then that would change things. But a $100 million for storage facilitiies doesn't really change things much. They need to get that refinery cranking again. And doesn't seem like that is happening. I don't know much about it though. Why do east coast margins suck so bad? Is it because of a glut of Europe product coming in??
100 miljoen would be great you can pay the interest on the $1.055 billion debt and even you have some money left for a nice Christmas. I'm more interested in the business outlook of this investment and/or a Profit and Loss effect because it's all about earnings per share isn't it?