Calumet Specialty Products -6.5% after Q2 results, downgrade


Calumet Specialty Products (CLMT -6.5%) is cut to Neutral with a $33 price target (from $40) at Credit Suisse after disappointing Q2 results and citing the recent narrowing of crude spreads which could provide a strong headwind to a company that has expanded fuels exposure in recent years.

CLMT increased its Q2 distribution by a half-penny vs. run-rate Q/Q distribution growth of $0.03 over the prior six quarters; the slower increase suggests a slower distribution growth outlook until late next year, when ~$60M in growth projects is scheduled for completion.

Comments (5)
  • Brandond
    , contributor
    Comments (498) | Send Message
     
    Get paid over 9% to wait for recovery of what has been a great stock over the past few years; doesn't seem to bad at under $33. Thinking of taking a position but need to dig into the new reports first.
    8 Aug 2013, 03:01 PM Reply Like
  • casper1918
    , contributor
    Comments (29) | Send Message
     
    I dumped about a third of this dog today. I wish I had dumped it all a couple months back when the president of the company sold some of hers.
    9 Aug 2013, 01:12 AM Reply Like
  • AlbionWood
    , contributor
    Comments (928) | Send Message
     
    I already have all I can hold of CLMT, otherwise I'd be buying more on this dip. Well managed company with strategic plans and solid distributions.
    8 Aug 2013, 05:28 PM Reply Like
  • jolacious
    , contributor
    Comments (105) | Send Message
     
    I am also thinking of taking a position in this great American stock. I am particularly impressed with its strategic desire to go international. Imagine if it could penetrate China India and Africa, surely a possible 10 bagger.
    8 Aug 2013, 05:41 PM Reply Like
  • SaltyDog62
    , contributor
    Comments (833) | Send Message
     
    18 months from now this price <30 will look like a bargain. Remember new refinery project in ND comes online late 2014 i think it is.
    24 Aug 2013, 07:41 AM Reply Like
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