Introduction
When last analyzing Delek US Holdings (NYSE:DK), they were facing the onslaught of the severe Covid-19 economic downturn that had caused a record cash burn and forced the complete suspension of their dividends. There
Delek US Holdings: Positive Signs Of A Recovery And No Solvency Issues After A Terrible Downturn
Summary
- When last analyzing Delek US Holdings, they were facing the full economic onslaught of the severe Covid-19 downturn that saw a record cash burn and their dividends completely suspended.
- Thankfully, they saw slight relief during the fourth quarter of 2020 and an improvement during the first quarter of 2021 with year-on-year improvements.
- When these are combined with new Covid-19 cases in the United States trending down, it provides tentative signs that a recovery is underway but the exact outlook remains uncertain.
- Their financial position has not deteriorated since my previous analysis seven months ago and thus there are no solvency issues.
- Since this effectively buys time to wait out this rather unpredictable downturn and hopefully recovery, I still believe that my neutral rating is appropriate.
I primarily focus on income investments, as well as deep value and contrarian opportunities.
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