DK is over priced at current price vs. bbl of ref capacity. low relative complexity rating and they are stuck with lousy asphalt margins via the lion purchs. retail margins have been crushed with the run up at the pump and seasonal margins rolling over. looking for a health correction.
I agree with you,that they pay so little in Dividends it would be a tough call to hold on with the price run up. Their payout Ratio is only 12% and the strangest thing I find about this company is its 75% insider ownership. I`ve never seen a company with a market cap over a billion that had 75% insider ownership. I just can`t figure out whether thats a good thing or a bad thing. At least no one can say that the Top People with the company have no skin in the game.
insider ownership is a good thing in general, but it will not change the fact that margins are getting smashed. q4 i think you wee the likes of dk and tso lose $$. the mkt is not pricing that into share prices.
a rising tide lift all boats. the mkt got all hyped up on mid cont crude discounts and now that has changed significantly over the past year. the lion purchase gave tehm a lift...but asphalt is total #$%$ and now they own it! retail will be terrible in q4 and they own that in spades as well.
i think WNR will be $18 in short order. almost 10k per bbl of ref capacity is crazy high for a company with poor complexity. buy low and sell high!