Delek US Holdings, Inc. (DK)

[jugs]

Everything has its price, they say. And every stock has a valuation, deserved, or, perhaps, not, depending upon who's doing the looking.

Top analysts had foreseen DK moving higher, going back towards the end of the year. Well, we've been perched above their targeted valuation so today's swoon is hardly surprising. Plus, being as ALDW moves in lockstep with DK, I see no incentive on which to base buys in either pick.

So buy on a deep swoon if that's going to place you on the train to prosperity. But please take into consideration that those of us loading onboard back in mid-November are ridiculously ahead now, despite the pullback. My own cost basis stands at $27.88. And this current swoon may be nothing more than muddy water with sloppy footing in anticipation of the big swallow that has DK soon fully eating ALDW assets, finally.

Bottom line: I'm definitely not going to add to DK at this time. And in the days ahead when ALDW is completely consumed, my 10,121 units of ALDW will convert to shares of DK at a rate of almost one share of DK for each two units of ALDW.

So I'm sitting tight for the moment.