Replies to post #1301 on Alon USA Partners, LP (ALDW)

[jugs]

You know something? All this talk about Delek gaining majority control but I've yet to learn what the DK threat might be in the eyes of some?

Delek brings strong financial muscle into okay but ALDW operates as a stand-alone and a strong one, at that. I think that for that reason alone, some have feared Delek is wanting to devour the whole enchilada, ALDW and Alon USA included.

My take is that Delek doesn't need to ransack ALDW. I'd probably lose horribly were such a scenario develop. But there's an equally interesting possibility here:

What if DK were interested in funneling assets into ALDW so as to better focus DK on its core concerns while enabling ALDW to benefit from a broader array of its own core assets under the MLP structure?

Now this would certainly be a welcome development!

Still, I have to wonder why the question was not brought up in the Q&A session following Management's statements?

Anybody ready to take a stab?

[srains]

I will. Not sure if the order will fill but we will see. Not a lot of option volume on ALDW. My guess is, we will need a small pullback for my option order to fill.

[srains]

I just picked up 15 contracts for the November 17, $12.50. Probably should have paid .55 to .60 but I went ahead and got them at .70. I am basically taking half of this qtrs dividend payout or about $1,100 and bought these options. I felt that volatility had not been priced into the options. I also felt that for us to move another $2+ in 6 months was much more likely than it staying where it was.

I did not sell any of my options but if the stock moves up to $13.50 or if I take a larger position in the option contracts, I could do some covered calls, we will see.

Again, I do not post my trades in order to encourage others to do the same. I post them so people know why I am doing what I am doing and possibly learn from my mistakes.