jhcap Posted June 27, 2013 Share Posted June 27, 2013 This company is popping up on just about every value screen. HFC is ideally located to capitalize on the unconventional oil boom in the plains states, rocky mountain states and the Southwestern states. Current price= $42.82 P/E ratio = 4.82 Liabilities = $1.7 Billion Book value = $6.5 Billion Cash and investments = $2.5 Billion (Separate from operating assets) Cash flow yield on operating assets of over 26% The cash is just building up so I would expect more buybacks, more special dividends, an increase in regular dividend, or acquisitions/expansion. Risks: Decrease in crack spread Emissions regulations "I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up." - Jim Rogers Link to comment Share on other sites More sharing options...
prevalou Posted June 27, 2013 Share Posted June 27, 2013 given HFC is in a cyclical business, i wonder what is the normalized earning power. Link to comment Share on other sites More sharing options...
newyorkminute Posted November 8, 2013 Share Posted November 8, 2013 What do you guys think about HFC nowadays? They just took a big hit after a dissapoint last quarter. They have however still an impressive ROE (27.30% TTM), ROI (21.34% TTM) and ROA (16.30% TTM). A chance to pick them up at a discount or a falling knive? Btw, this is my first post. Started investing a year ago and hoping to learn much here. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted November 8, 2013 Share Posted November 8, 2013 Back when I started investing in 1989 and the very early 90's, I can remember looking at the refiners in Value Line. At that point in time, refining was generally a TERRIBLE business. Most refiners LOST money, or made very, very little. I think the best refiners were making something like an 6% ROE. They sold at huge discounts to book value...This kept up for a good period of times, years in fact. The last few years, refiners have made TREMENDOUS returns. So their profits falling would be a reversion to the mean. Perhaps in the future they will make average to slightly below average returns? Link to comment Share on other sites More sharing options...
GroupePretoria Posted June 25, 2014 Share Posted June 25, 2014 HFC have taken a drop today following the new exportation legislation. Any thoughts? Link to comment Share on other sites More sharing options...
CorpRaider Posted June 25, 2014 Share Posted June 25, 2014 All I know is KMP was already building at least one facility/splitter to create and export condensate and I think they are looking at building another, so I don't know that much has changed from yesterday to those in the industry. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now