1 Stock I am building my Portfolio around! (10/28/2011)

Posted: October 28, 2011 in Energy, NYSE, Oil and Gas, PoulTrend Alert!, Watch List
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One Stock I am Building my Portfolio with! Of which I feel may be a High Risk, but at the same time offering me a possible long term growth investment both in value of share price threw both split’s, and dividend is

HollyFrontier Corp  Public, NYSE: HFC – formerly known as Holly Corporation, is an independent petroleum refiner that produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. Operates on two segments: Refining and Holly Energy Partners, L.P. (HEP).

 December 31, 2010,owned and operated three refineries consisting of a petroleum refinery in Artesia, New Mexico. This refinery of which operates in conjunction with vacuum, and crude oil distillation, and other facilities 65 miles away in Lovington, New Mexico (the Navajo Refinery, and a refinery in Woods Cross Utah/Tulsa Refinery.Owns and operates Holly Asphalt Company, and owns 75% interest in a 12-inch pipeline project from Salt Lake City Utah to Las Vegas Nevada.

In July 2011 had a Merger with Frontier Oil Company. Over the Past 52 week period HollyFrontier has traded between 15.69 – 38.90. During this span it also has announced a Dividend, and had a 2:1 Split.  Currently the Dividend is 0.09/1.10 which in time I expect to grow, and possible at Rapid Rates over the coming years ahead. Their may also be the possibility of a Bigger Company coming in, and making an offer on buying them out.

For instance if you read my post (9/6/2011) of this year I recommend (BEXP) of which opened at $29.31

Brigham Exploration Company (BEXP) – of which  engages in the exploration, development, and production of oil and natural gas in the United States. The company owns property interests in the Onshore Gulf Coast consisting of the Vicksburg trend in Brooks County, Texas. Frio trend in and around Matagorda County, Texas. (BEXP) also has joint venture interests […]

Since this Post on October 25th their was an announcement that Brigham Exploration Company, was going to buy out all the outstanding shares of Brigham for $36.50.

HollyFrontier Financials

Not only do I believe we will still need oil, and oil refiners, for at least 10 possible 20 years. I tend to like Oil Refiners because of overall demand in supply of which has continues to grow each, and every year, and with the USA still number one in oil consumption from Cia.gov numbers. With the USA Dollar of which dropped some bit this year this may result in more demand from other countries which would essentially grow profits. Not to mention refiners do better when oil is down and Gas Climbs which for the better part of this past year Oil, has been quiet low. As of late oil however has made a climb back, and gas has dropped but Overall Long Term, I expect them both to climb. As I overlook the Balance Sheet there was a few things of which sparked my attention. One being Yes, that HollyFrontier has a solid Dividend, and has already had a 2:1 Split,Its P/E is 9.94 which I feel is quiet low.  My only concern is their accounts payable is equal to about 2/3 rds of their liquid assets, especially since a very serious chunk of those assets are accounts receivable. With the Economy as of late their could be a lot of debtors unable to pay at some point in time, or for long periods of time, even some not paying at all. This would then result in difficult paying their creditors. If this scenario was to occur they could possible drop long term assets. Over the coming months and years ahead I think there is great growth possible.

2010 Total Financials for year

Revenue at 8,322.93

Gross Profit 955.78.

Q1 & Q2 2011 Financials 

Revenue Q1 of 2,326.59, Q2 of 2,967.13 – Revenue has climbed each year since 2006 with one slight off year in 2009, which revenue was still over 50%.

Gross Profit has been Q1 of 341.97, Q2 of 520.04 – Has been solid since 2007, with 2010 out beating 2009 by 359.52

Numbers from 2010 Total Financials Down, are all in Millions.

Today (HFC) is trading around $31.50 around $7.50 off of its 52 week highs, and down $0.62 from yesterdays open.With a dividend of 0.09/yield of 1.11, EPS of 3.20, and AVG Volume around 4.10 Million which for today has only moved 700,000, and for less than 3 hours of trading left, its obvious many are sellers are offsetting the buyers, and that Volume on the day may not even meet Half the Avg. My theory being many are holding out the storm, waiting for Q3 earnings.

Currently I hold a long term position in (HFC)

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