Canadian Money Forum banner

Parkland Fuel Corp (PKI.TO)

18K views 34 replies 18 participants last post by  AltaRed 
#1 ·
Anybody here hold or follow this stock? I've had it on my watch list for a couple months now but haven't pulled the trigger. It seems to be well managed and they have had a succession of strong quarters up to Q3 - bad quarter due to low refinery margins. The stock hasn't done much in the past year but it looks reasonably valued IMO. I'm wondering if the low refinery margins will create problems for a while or not.
 
#2 ·
there has been PKI discussion, nearly all of it favourable.

as best i can recall (don't own this stock) good management, good business plan. Dividend may be solid but me i look for active options markets as well ... PKI alas suffers from canadian-wilting-option-disease, its option market in montreal is moribund. This would not be a concern for investors who don't do options, though.

charts still looking fully-priced, to me anyhow.

did u search the archives? there might be a thread already. If not, such discussion might have been buried forever in the What Are You Buying thread.
 
#3 ·
I have read its discussion a few months back. I searched before creating the thread and didn't find an old thread for PKI. I believe you're right about it being in the What Are You Buying thread - I thought I would start a discussion here, though. I wasn't sure if there were any CMFers who actively followed the stock. The company seems to be quietly making acquisitions, signing marketing contracts (with Chevron, specifically), and other forms of expansion. I would like to get into options, but my portfolio isn't ready for that yet. The price chart is showing higher lows over the past six months. Still undecided if I want to pull the trigger on this one but if the next few quarters are favourable, it looks poised for a break out.
 
#4 ·
yes perhaps parkland did flash by in WRUBuying thread ...

where it's glimpse now or forever hold your peace

actually, i like the chaos this forum sometimes falls into. I'm happy with chaos because it mirrors real market life.
 
#14 ·
I have owned Parkland since 2008, and have been quite happy with it, collecting the divs, and dripping in the registered accounts too.

It has moved up and down, but has been a solid performer.

I was on the phone with their Investor Relations guy for about 20 minutes the other day.
I was concerned tht the div increase was rather small, but he told me that the company has growth plans into the future, and so the div will be raised slowly for several years.
As well, they started a cost cutting program several years ago, and it is starting to pay off, and the company is growing through aquisitions as well.

At todays prices it still yields about 4.8%. and the div is sustainable.

Bottom line.... I am certainly not selling, and think Parkland will move up into the future.
 
#17 ·
I had forgotten that I had commented on Parkland.

The stock is up over 10% today on news that Parkland has purchased the Pioneer Gas station chain
As we own lots of shares, I am very happy about this news. It has been a solid performer, .....and my feelings about the company are still the same:

"Bottom line.... I am certainly not selling, and think Parkland will move up into the future."
 
#20 ·
The trend line through the 10 year chart would suggest this is fairly priced at these levels. Some may argue there are synergies yet to come from the Ultramar and Chevron acquisitions and thus there is room to run. Others may say some of their businesses, like propane, and even gasoline margins will be further squeezed as the petrochemical plants in AB get built and/or crude prices strengthen in the $60 range. Chevron was not likely dumb to time the sale of their Canadian downstream when they did.

The best time to have bought would have been right after their 3Q results on Nov 2nd when they had misses in their results and fell into the $23-24 range.

I own ATD.B instead.
 
#21 ·
Thanks for the input , been watching since around $25 .. I would add around there or lower if possible as i think it's fairly valued as well ( for now ) .

Looking for more of a dividend/moderate growth story than couche-tard , growth for sure but a lower yield than what I'm looking for.
 
#22 ·
I'd suggest the companies are in different phases of their story. ATD.B has taken the last few years to digest its acquisitions and may be ready to leap again soon into the next phase of growth, while PKI has just completed huge acquisitions and may take the next 2 years to digest them (no real growth).

My bias is that ATD.B seems better positioned to expand internationally than Parkland, and where does PKI go for its growth story? The only stuff left in Canada to acquire Irving or Petro-Canada. Irving is not likely to divest of its core business, and Suncor seems intent to remain fully integrated and not divest its downstream. Time will tell, but my money says to stay with ATD.B. My other bias is to like multi-nationals more than single country stories as well (though Parkland does have a North Dakota presence). There may be running room in the upper midwest for them.
 
#23 ·
Thanks for that as well , I agree the PKI story will take some time which I'm willing to wait for (add on dips).

Hoping for a Div increase sooner than later and maybe it's get closer to the $30-32 highs previously seen earlier in the year after digesting the refinery acquisition .

What i need to do is quit adding individual stocks and start building on the ones i want to keep ..
 
#31 ·
Thoughts on the hit taken after earnings ? Not much for trading (Div stocks , actively trade small caps/spec stocks of course) since still in the building phase of my portfolio but thinking about selling and getting back in after a bigger correction that might come .

I never sell on fear or sentiment , but think taking what i've made on this and getting back in later might be the best plan right now ?
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top