Why Susser Holdings Corporation Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Susser Holdings  (NYSE: SUSS  ) and Susser Petroleum Partners  (NYSE: SUSP  ) jumped 36% and 21%, respectively, following a buyout offer.

So what: Energy Transfer Partners (NYSE: ETP  ) will pay either $80.25 in cash, 1.45 shares of ETP, or a combination of both for each share of Susser Holdings, which operates hundreds of Stripes convenience stores in Texas, New Mexico, and Oklahoma. This will give the company control of wholesale fuel distributor Susser Petroleum Partners, where management said the retail businesses of Susser and Sunoco into one retail business.

Now what: With Energy Transfer Partners shares down today, the cash offer is most attractive to shareholders; there's even $3 in upside after today's pop. There's always a possibility the deal won't go through, so if you're looking to cash out that upside may be worth giving up to eliminate the risk. Long term, this makes a formidable gas retailer. But with consumption falling over the past decade, it's not a market I'd buying into, so I'd be a seller on the pop today.

The way to play U.S. energy today
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2933524, ~/Articles/ArticleHandler.aspx, 9/22/2014 10:25:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement