Seeking Alpha

HollyFrontier has 30% upside, Barron's says

  • Barron's says Wall Street's worries over HollyFrontier's (HFC) generous 7.3% yield are overblown.
  • HFC has paid its $0.50 quarterly special dividend for two years straight. Its access to cheap crude, coupled with shareholder-friendly management, mean it's likely it will continue to.
  • Matt Murphy of Stelliam Investment Management values shares - down 25% since March to $44 due to concerns over margin shrinkage - at $55-60.
  • On Seeking Alpha: Intangible Valuation's coverage of HFC is a must read.
Comments (1)
  • 13761362
    , contributor
    Comments (382) | Send Message
     
    interesting discussion of "the dead spread" in another article as well. light sweet is superior oil so having that Brent "junk" for lack of a better term constantly trade at a premium i've always found beyond odd. the fact that "good is better" is now asserting itself (light sweet is finally getting some pricing power) i think the realization that this is superior fuel "will be realized" (in that it's far easier to turn into fuel than say tar sands oil.) i agree that should be very good for profits since making gasoline is in fact not that complicated and given the emerging pricing pressures in the energy space trying to make gasoline from heavy crude which is complicated also means to me "it's expensive." since it is legal to export gasoline and Holly is in the high profit margin side of the business it stands to reason that "high profits will result" and "this will be reflected in the stock price." in other words i like the call here...especially when your feedstock is either natural gas or electricity to produce said fuel.
    28 Jul 2013, 02:29 PM Reply Like
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