Parkland Fuel Corp (PKI.TO)

PKI is up roughly 5% today as it rejected its largest shareholder, Simpson Oil's, request for a review of strategic alternatives. We continue to like PKI here and while the added executive and shareholder disagreements are not great for the stock, its fundamentals have shown significant improvements. 
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Well-run. The refinery enjoys good margins. Gas stations work in underserved areas. Likes them.

Distributor of variety of fuel products. Growth by acquisition company. Does not see upside on shares at current price. Well managed company overall. Recent activist investors not good for long term shareholders. 

The question was whether it can replicate Couche-Tard's business. The answer was maybe but it would take a long time. He owns Couche-Tard which is very well run and has made good acquisitions.

Fuel wholesaler with refinery operations.
Does not own shares.
Refinery operation volatile with high liabilities. 
Would not recommend buying. 
High debt levels.
Would prefer defensive pipeline companies in energy sector.

Acquisition spree, and debt got out of control. Renewed focus on paying down debt. Serial dividend grower. Attractive valuation, but it's a show-me story. If you believe Canada's population is growing and needs to get around, should do well. Great international division. He has a small position, great business, he's not selling.

EPS of $0.64 beat estimates of $0.2553 and revenues of $8.16B missed expectations of $8.22B. Sales grew by 7% for the year, driven by large advancements in its International segment. Net profit margins expanded slightly from the previous quarter, and it generated $201M in free cash flows, which were mostly used for repaying debt and paying dividends. Management is confident that it can achieve $2B in Adjusted EBITDA by 2025 without additional acquisitions and while reducing leverage. These were good results and the market is reacting well so far. 
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They have a junk debt rating. But is well-run, trades around 11-12x PE, and pays over a 4% dividend. Are positioned well in their markets and have been  making smart purchases over the years. Now, he'd like them to pause that, grow organically, pay down debt and raise margins.

They're different, because ATD is retail and convenience stores, whereas PKI that's only half their business, as well as selling energy products to companies and their BC refinery (25% of their business). Also, different analysts cover each company. The refineries tend to get a lower PE and are less ESG-friendly, and are in a heavier-asset industry. Is less stable than ATD. ATD also has Circle K's not necessarily attached to their gas stations, whereas they are attached under PKI. PKI's balance sheet is more leveraged, too. She owns neither company.

A bellweather stock. Is climbing above $31 resistance now. Chart shows a nice trend since November. Stick with it or buy a half-position to enter.

Stock tends to peak and trough at the same place over a long time. Hasn't hit the dead bottom yet. If you own, don't sell. Happy to buy if it got just a bit cheaper, when it would be a real steal.

Increased dividend 5% recently.
$40 million in buybacks planned.
Leverage high and is putting pressure on the stock.
No catalyst for a higher share price with flat growth.
Better places to allocate capital to.