Replies to post #287 on CVR REFINING (CVI)

[michaelmerriman]

At least Credit Suisse has a reasonable reason for a downgrade.

Credit Suisse Article Here

Analysts see a risk of Cushing margin compression, and they believe that CVR will struggle to compete with peers in the sector. Credit Suisse is projecting below-consensus earnings for CVR in 2015. Price target: $19.00

New pipelines coming online might narrow Cushing pricing advantage and this might do a bit to close WTI-Brent margins... but who are the peers in the sector with higher margins? Even if they get oil at Brent prices they're still a refinery and if they aren't doing stupid things with CapEx and executive pay and they maintain a reasonable level of debt, they're still going to make money and pay all profits to shareholders in the form of the dividend!

Let the stock get to $19 and continue to pay me $0.5 to $1 per share per quarter and see if I'm complaining! Still a great yield.