Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

CST Brands Is A High Quality Retail Stock At A Great Price


In an environment where retail stocks are disappointing every day, a recent spinoff of Valero retail business - CST Brands Inc. (NYSE:CST), seems like the retail stock worth owning. CST Brands can now invest and focus as a retail business from a "Fuel Centric" approach earlier. The company has started to invest in improving its existing infrastructure, expanding food service, launching private labels and other similar value creating opportunities. The company may also start offering dividend in the coming quarter.

This recent spinoff has potential to benefit from a geographical realignment of stores, improving merchandise, expanding private label offerings, leveraging supply chain and changing fuel sales strategy to maximize profits.

The reward vs. risk is very favorable...

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