I think it's a fantastic deal; i'm surprised the stock isn't up quite a bit on it (obviously market down quite a bit today, but even with that i'm surprsied stock isn't up more)
the hope is that these proceeds get plowed back into share buybacks, but we'll see. Either way, this is ~20% of the market cap in cash, and it's from assets I don't think many people gave them credit / valeu for
Thanks for the quick response. Felt like a great buying opp even though I'm in too large as it is. My next question was going to be what catalysts remain but it sounds like you think potential buyback is the main one...
I think (aand hope) management is eager to buyback shares, and getting this done should set them up to do it (they'd indicated to me they were blacked out)
other catalysts would be cleaning up DKL, doing something with W2W, or crack spreads recovering..... but it obviously feels nice to get this much cash on to an underlevered BS
Is this a good deal or is the selloff just regular DK pessimism?
https://ir.delekus.com/news/news-details/2024/Definitive-Agreement-Signed-for-FEMSAs-Acquisition-of-Retail-Assets-from-Delek-US/default.aspx
I think it's a fantastic deal; i'm surprised the stock isn't up quite a bit on it (obviously market down quite a bit today, but even with that i'm surprsied stock isn't up more)
the hope is that these proceeds get plowed back into share buybacks, but we'll see. Either way, this is ~20% of the market cap in cash, and it's from assets I don't think many people gave them credit / valeu for
Thanks for the quick response. Felt like a great buying opp even though I'm in too large as it is. My next question was going to be what catalysts remain but it sounds like you think potential buyback is the main one...
I think (aand hope) management is eager to buyback shares, and getting this done should set them up to do it (they'd indicated to me they were blacked out)
other catalysts would be cleaning up DKL, doing something with W2W, or crack spreads recovering..... but it obviously feels nice to get this much cash on to an underlevered BS