# Parkland Fuel Corp (PKI.TO)



## Canadian (Sep 19, 2013)

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.


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## humble_pie (Jun 7, 2009)

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.


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## Canadian (Sep 19, 2013)

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.


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## humble_pie (Jun 7, 2009)

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.


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## al42 (Mar 5, 2011)

Seems a fairly large contract with suncor is coming to an end soon.

http://www.stockchase.com/company/view/967/0/Parkland-Fuel-Corp/PKI-T

Good dividend paying stock. Over hang is a contract with Suncor that ends at the end of this year and will result in quite a bit of drop in revenue. People will realize when they report the first quarter. You want to buy after this.


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## Canadian (Sep 19, 2013)

Thanks for the share, al42. The SFP Energy acquisition and the new Chevron contract should offset the Suncor contract. I may sit tight until the new year to see how it all plays out. There are other stocks I have my eye on.


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## liquidfinance (Jan 28, 2011)

I had been looking at this as it seemed good value with a healthy yield but I was concerned and thought I would leave alone based on what was posted by al42.

Keeping my eye on it though.


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## Xoron (Jun 22, 2010)

I pulled the trigger on it back in early Nov. Basically flat for me since then, but looking at the numbers, it looked like a good buy. Small position but I'll likely add if there are further pull backs and the fundamentals continue to look good.


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## Canadian (Sep 19, 2013)

Xoron said:


> ...fundamentals continue to look good.


I agree. They had a series of strong[er] quarters up until the most recent one. It pays a nice dividend with a relatively low payout as well. I think I'll continue waiting on the sidelines until Q4 to see what kind of impact the refinery margins and Suncor contract have on overall performance.


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## Homerhomer (Oct 18, 2010)

good numbers yesterday and a small div increase.


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## PatInTheHat (May 7, 2012)

Another stock I successfully sold too early


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## Canuck (Mar 13, 2012)

PatInTheHat said:


> Another stock I successfully sold too early


lol


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## Canadian (Sep 19, 2013)

Had this on my watch list for a while and never got around to pulling the trigger. I think I missed the boat for now! Oh well, I'll keep spying for buying opportunities.


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## warp (Sep 4, 2010)

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.


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## Homerhomer (Oct 18, 2010)

was thinking there may be a pullback today and a chance to add a bit more after the purchase from suncor, I guess that's not the case, up by about 8% ;-)


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## My Own Advisor (Sep 24, 2012)

Damn, wanted to buy some more! I also think the divi. is sustainable.

Like warp: "Bottom line.... I am certainly not selling, and think Parkland will move up into the future."


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## warp (Sep 4, 2010)

My Own Advisor said:


> Damn, wanted to buy some more! I also think the divi. is sustainable.
> 
> Like warp: "Bottom line.... I am certainly not selling, and think Parkland will move up into the future."


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."


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## My Own Advisor (Sep 24, 2012)

Agreed warp. A nice dividend payer for sure


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## spdr1812 (Apr 8, 2016)

Wow , no one in 3 years , anyone adding now ?


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## AltaRed (Jun 8, 2009)

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.


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## spdr1812 (Apr 8, 2016)

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.


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## AltaRed (Jun 8, 2009)

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.


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## spdr1812 (Apr 8, 2016)

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 ..


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## Ponderling (Mar 1, 2013)

AltaRed said:


> 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.


I did jump in at the dip for about 12k worth. I also hold a similar amount in couche tarde stock. Both fit a consumer staple oil intersection that I desire.


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## Calgary_Girl (Apr 20, 2011)

Great day for Parkland! Own approximately 3,750 shares at an average cost of $27.84 😁


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## Calgary_Girl (Apr 20, 2011)

Up over 6% this morning!


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## londoncalling (Sep 17, 2011)

Any insight as to why on what is otherwise a down day for many stocks?


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## newfoundlander61 (Feb 6, 2011)

"Investors may be ignoring the risk that financial conditions could tighten sharply and send tremors through the global economy, the International Monetary Fund warned." Maybe?


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## AltaRed (Jun 8, 2009)

londoncalling said:


> Any insight as to why on what is otherwise a down day for many stocks?


Perhaps because I filled my tank at a BC based Chevron gas station yesterday?

Actually maybe because PKI is upping its international presence? https://www.parkland.ca/en/investor...st-Independent-Fuel-Marketer-in-the-Caribbean


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## OnlyMyOpinion (Sep 1, 2013)

You've done well Calgary_Gal. 
Hoping your overall FP/portfolio is factoring in the risk of market headwinds.

They've come a long way from a feedlot and a rusty facility at Bowden.


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## spdr1812 (Apr 8, 2016)

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 ?


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## Ponderling (Mar 1, 2013)

I sold out this spring, when the upside for this holding looked a bit hard to achieve. They will stay on the scan for getting in again if the right circumstances occur.


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## spdr1812 (Apr 8, 2016)

Thoughts on record earmings but a bigger drop then other equities that day .. ? Strange they kill it and drop 2-3% more than the pack


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## doctrine (Sep 30, 2011)

Unfortunately in many areas, consumption of refined petroleum products is plummeting. They require volume and as such will take a big hit. They have $3.8B of long term debt and don't have the type of interest coverage ratio that gives confidence in a recession. It is still trading at over 2 times book value despite dropping 28% in the last month. I feel like this could definitely drop to book value.


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## AltaRed (Jun 8, 2009)

Don't think owning refining assets like the Burnaby refinery is a good idea due to small size, but it is very strategically located. From my perspective, they are too highly leveraged. 

I read an article some time ago, could have been something as useless as Motley Fool, that said PKI was a fuel merchant with convenience operations as a sideline vs ATD.B being a convenience store owner that happened to also sell fuel. I don't have an opinion either way


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