Aug. 25 at 2:33 PM
$DK $60 soon after ER- Breaking -The Massive catalyst is here & the market is just realizing it.
The EPA approved Delekās Small Refinery Exemption late Friday, unlocking hundreds of millions in RIN value. This was the core catalyst in my thesis.
Sum of the-parts mispricing $ DKās stake in
$DKL $1.5B plus $ 623M in cash already equals the market cap
$1.6B. The refining business is basically free.
Balance sheet misunderstood True net debt is only
$268M, not the
$2.8B screens show.
Buybacks + insider alignment: $ 565M buyback authorization (>35% of market cap), insiders buying, ownership ~111%.
Diesel leverage Crack spreads
$32ā
$42/bbl, exports booming, inventories lowest since 2005.
Short interest 14ā20%, float is tight.
The RIN refund alone could be $ 300Mā$ 530M (up to 35% of market cap), not priced in. With diesel margins and buybacks, DK could re-rate sharply.
$60+ would not surprise me. Cheers everyone.
