Welcome to the Hardcore Husky Forums. Folks who are well-known in Cyberland and not that dumb.
The Bull's Labor Day Buy; Marathon Oil (symbol MPC)
Currently trading at 34. Selling their gas stations to 7-11 in Japan for 21 billion, to close next spring/summer. Don't see any reason why deal won't go through. Got pre-covid price for unit and on upper end of what company thought they would.
Their remaining two units are refineries and pipelines.
Companies market capitalization is 21 billion so this sale is valuing the other two at zero.
Dividend is 6% and there has been no mention in any articles or by management about it not being safe or cut/eliminated.
There are approx 50 refineries in the US and they are the largest player with a 30% share. There hasn't been a new refinery built in 30 years and b/c of cost and regulatory issues there may never be again.
Oil has traded like doo doo (reference to coach Pete and his team Olympics last year when he told Keith B his team swims like doo-doo, much like his recruiting. My bad wrong board) this week which has been impendence for stock to trickle down imo
One year from today, Marathon will be trading in the low 40's. Add the dividend and looking at a 25% return. If wanted to go 5 years out, with reinvestment of dividends (key to this projection) I could see a double.