Global Partners: This stock has backed up in price and is offering an incredible entry point. Global Partners L.P. (NYSE:GLP) engages in the purchasing, selling, gathering, blending, storing and logistics of transporting gasoline and gasoline blend stocks, distillates, residual oil, renewable fuels, crude oil and propane to wholesalers, retailers and commercial customers in the New England states and New York.
The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Its Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blend stocks, diesel, kerosene, residual oil and propane to home heating oil and propane retailers and wholesale distributors. It also aggregates crude oil through truck or pipeline in the mid-continent region of the United States and Canada, as well as transports it through rail and ships it through barge to refiners.
The Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers, and it operates gasoline stations and convenience stores. The segment provides car wash, lottery and ATM services, as well as leases gasoline stations.
Its Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil and bunker fuel to end-user customers in the public sector, as well as to commercial and industrial end users. It also sells custom blended fuels.
As of 31 December 2020, the company had a portfolio of 1,548 owned, leased or supplied gasoline stations, which included 277 directly operated convenience stores. It owned, leased or maintained storage facilities at 25 bulk terminals, with a collective storage capacity of 11.8-M bbls.
Investors receive a 10.95% distribution. Wells Fargo has an Underweight rating, and its price target of 23 is just above the 22 consensus figure. The stock closed on Friday at 20.10/share.
My 1yr price outlook for GLP is 26.89, the stock is very oversold.
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