One point I dare not ignore, though:
We don't know how DK will recognize ALDW units upon conversion in terms of tax liability. It'd be great if it were as simple as a near 2:1 @.49. But we have no way of knowing there'll be a step up.
Many of us have elected to liquidate half of our previously held ALDW holdings as this limits our tax exposure to 50%. But that may not be how it works. As of this time we can't know. DK may announce that our units of ALDW are to be credited with a value LESS consideration of gains accrued priorly. This would effectively screw those expecting a step up and for this reason I sold half my units.
Half of something is worth more than all of nothing.
Continuing on this path... my sense all week has been that DK would soon be rising, a result of the really fine quarterly report. I immediately started buying and announced so on the board. Over the first three days of this week I built a 2100 share position.
The give-away was the report itself which I studied, knowing my responses would be guiding me as the big swallow is in processing mode and I had to move on things to protect my interests. It was clear there'd soon be analyst upgrades.
It was Tuesday, I believe, when the flurry of analyst announcements landed and I topped off the tank immediately. Later that day Wells Fargo came out with their +47% projection amounting to a $40 share. At that point I felt I had to push people hard or the opportunity would fizzle. So I campaigned and prodded.
My 2100 shares are nearly $2,000 ahead already. Before WF spoke of $40 I'd come up with my own $38-$39 based on studying the quarterly, looking at the prior several years of earnings and capex and especially the fact that the company had been able to execute fairly well despite difficult times in the energy sector.
Adding it all up I figured that while I may be exposing myself to a lot of taxation by selling half of ALDW, that gives me the cash to redeploy in DK. Further, I get to buy DK now on the cheap. When the swallow happens, DK may be several dollars higher in valuation and that might trigger a different accounting procedure affecting the 0.49 basis.
NOT buying into DK now is a mistake in my eyes as I see a rising valuation ahead. Holding ALDW may seem very profitable but January brings a new tax year and I wouldn't want to be in the revolving doors come the first of the year.
A lot of people don't know about DK but this will surely change. Brokerages will promote it as they want their clients to make money and this pick is going to do that.
Waiting to learn the final terms of the swallow and doing nothing is like not living until we know how we will die. This is the ideal time to act! Waiting could quickly add $5 to the cost of a share whereas acting now eliminates concern. At the worst, you'll end up with shares you hadn't considered, shares probably containing unexpected gains while in the womb awaiting the big swallow.
I hope this helps you, please let me know.
Recent DKL News
- Delek Logistics Partners, LP to Host Third Quarter 2024 Conference Call on November 6th • Business Wire • 09/18/2024 10:50:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/13/2024 08:43:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 12:01:09 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 12:00:59 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 12:00:39 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 12:00:29 AM
- Delek Logistics Partners, LP Announces Closing of H2O Midstream Acquisition • Business Wire • 09/12/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/26/2024 06:25:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2024 01:01:13 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/16/2024 08:06:01 PM
- Delek Logistics Partners, LP Announces Pricing of Upsized Offering of $200 Million of Additional 8.625% Senior Notes Due 2029 • Business Wire • 08/13/2024 10:07:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/13/2024 01:05:59 PM
- Delek Logistics Partners, LP Announces Proposed Offering of $100 Million of Additional 8.625% Senior Notes Due 2029 • Business Wire • 08/13/2024 12:50:00 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 08/07/2024 09:20:49 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:07:57 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 07:17:19 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/06/2024 11:06:33 AM
- Delek Logistics Reports Record Second Quarter 2024 Results • Business Wire • 08/06/2024 11:00:00 AM
- FEMSA to enter the Convenience Store Industry in the United States • GlobeNewswire Inc. • 08/01/2024 12:40:05 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/30/2024 08:50:32 PM
- Delek Logistics Partners, LP Increases Quarterly Cash Distribution to $1.09 per Common Limited Partner Unit • Business Wire • 07/30/2024 08:30:00 PM
- Delek Logistics Partners, LP to Host Second Quarter 2024 Conference Call on August 6th • Business Wire • 07/03/2024 05:09:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 12:13:26 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 12:12:39 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 12:12:27 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM