Thursday, September 17, 2009
Our Boston presenter still likes GLP, despite the stock's 150% move since he recommended it a year ago. GLP has an 8% dividend yield. The dividend is poised to increase after Global Partners have held the payout steady for the past seven quarters. The company has just bought stock around the current price. As long as oil prices stay relatively stable, GLP's inventory carrying costs should remain steady. Whatever the company stores in excess of customer needs, they're making money on it. The big picture is very positive. Global Partners has diversified from a pure heating oil play into gasoline. The company went public at $20 in 2005 and since then its assets have increased dramatically through a number of acquisitions. The presenter targets $30 within a year.