Investment and money
Apple's China syndrome

Aggressive growth stock pick: HSN

Don't fight the 'fiscal slice'

Top picks 2013: Susser Petroleum

B of A inks whopping $10 billion mortgage settlement

Wendy's hikes prices: Here come falling sales

7 hot tech stocks to watch in 2013

Investing in breakfast stocks

Precious opportunities for traders

Google starts the year with a big win

Discover launches new no-fee credit card

Statoil expands its global reach

Top picks 2013: Oakmark Int'l, Matthews Asian

Top picks 2013: Gladstone Commercial

Inside Wall Street: CVS for your 2013 portfolio

Peregrine Pharma soars 80% on study review

Network stocks: 2 buys, 2 sells

Research In Motion is still doomed

Target targets showrooming shoppers

Top picks 2013: Triumph

Will big bank stocks keep up their big run in 2013?

Alcoa is shining brighter

Can HBO compete with Netflix?

Credit Suisse says Bank of America overvalued

Retailers face spending slowdown

Top picks 2013: Susser Petroleum
Master limited partnership Susser Petroleum (SUSP +0.07%), which IPO'd in September, is our top conservative pick for 2013.

The partnership's principal business is distributing gasoline and diesel fuel to the convenience stores owned by its parent, Susser Holdings (SUSS +0.62%) and to independent filling stations that have contracted with Susser for their fuel supplies. Susser Petroleum distributes fuel to all of the 550 Stripes brand convenience stores operated by SUSS.

It also distributes to 80 independently operated consignment locations where SUSS sells motor fuel to retail customers and to more than 480 independently operated convenience stores and retail fuel outlets that Susser Petroleum refers to as "dealers."

Susser Petroleum also own the fuel distribution rights to substantially all of the new locations that Susser Holdings constructs or acquires in the future through a 10-year supply agreement signed as part of the spin-off.

Its third-party dealer distribution contracts also generally have an initial term of 10 years. They currently have an average remaining term of approximately five years

In addition to its fuel distribution revenue, the company earns rental income from convenience store properties that it leases or subleases to Susser Holdings and third parties.

We think the purchase and leaseback of Stripes stores from its parent should create a virtuous circle for Susser Petroleum, whereby its parent uses the proceeds to build more convenience stores that Susser Petroleum will then distribute fuel to.

Every new Stripes store by default expands Susser Petroleum's fuel distribution business. In addition, Susser Petroleum has a relatively low-risk business model that is largely devoid of commodity risk, as it buys fuel from independent refiners and major oil companies at one price and sells it to the filling stations at another price.

Fuel is typically bought and delivered within 24 hours, and any fuel that isn't is hedged. Meanwhile, its locked-in 3-cent margin with Susser Holdings, which accounts for approximately 68% of its motor fuel volumes, reduces margin volatility.

As investors become more comfortable with the MLP's business model and start to recognize its growth potential, we think the stock should get a lift. It enters the year yielding 7.0% based on its minimum annual distribution of $1.75 per share.

Для печати
MGM gets nod for second casino in Macau

Facebook's announcement no big deal

Market trends show stunning flip-flops

An aggressive bet on pollution control

Hewlett-Packard: The Dow's top underdog

Buffett should reconsider Goldman Sachs

Apple gets price target, estimate cut

Less is still more for US restaurant chains

Boeing hopes to fly above 787 safety storm

Can Dell save itself by going private?

We could be in for a year of M&A

Play the housing rebound with this stock

The best commodity play: Plain Jane ETFs

Earnings season off to a superb start

Herbalife: Battle of the hedge funds

Ford doubles dividend - is it now an income stock?

Face time with Mark Zuckerberg?

Whole Foods should buy Trader Joe's

Is fee pressure latest threat to 'old' network TV model?

Why Wal-Mart could be an $80 stock

Uncertainty looms large as earnings season starts

Boeing shares slip as FAA review of 787 begins

Is Bill Ackman's Pershing Square toast?

4 stocks shining in the Oscar spotlight

Volcano, St. Jude: 2 hearts beat as one

Bowling, billiards, boating make Brunswick a buy

MGM sees progress on Macau casino

Glaxo to enter packed field of diabetes drugs

The new Corvette Stingray: Worth the wait?

It's time to eat some crow

Johnson Controls to benefit from start-stop batteries

Citi Trends upgraded to 'outperform'

When Apple falls, these 3 fall with it

Can Michael Dell save his struggling PC empire?

Car dealer stocks: Kick the tires carefully

Investors welcome China's market moves

Inside Wall Street: Noble expands offshore drilling

Is Hewlett-Packard stock a bargain or a landmine?