Alon USA Partners, LP (ALDW)

[jugs]

Delek (DK) is slated to swallow ALDW on February 7th as I recall.

This morning we got news of upgrades amounting to DK now sitting on a $44 target destination, up handily from the earlier $34 target. Being as two units of ALDW will soon become about one share of DK, then ALDW units have to rise proportionately, too.

It's simple, of course....if you're holding units of ALDW, why bother to convert now to DK when they'll be swallowed anyway? And as goes DK, so goes ALDW.

Additionally, DK is being upgraded in part because the company is being seen as becoming better positioned in terms of its ability to increase the dividend.

As I think things through, I'm of the opinion that this is the wrong time to be making big decisions. I figure it's better to wait until the dust settles and there's greater visibility. That's what I've elected to do. So I await the swallow and hope that the follow-on burps lead to increasingly attractive valuations plus much more meaningful dividends.