Home / Street Sector / Active Broker’s Concerns In Focus: Marathon Petroleum Corporation (NYSE:MPC), Pfizer Inc. (NYSE:PFE)

Active Broker’s Concerns In Focus: Marathon Petroleum Corporation (NYSE:MPC), Pfizer Inc. (NYSE:PFE)

Marathon Petroleum Corporation (NYSE:MPC) [Trend Analysis] retains strong position in active trade, as shares scoring 8.91% to $47.17 in a active trade session, while looking at the shares volume, about 20.27 Million shares have changed hands in this session. Elliott Management Corp., which manages funds that collectively beneficially own 4% of the ordinary stock and equivalents of Marathon Petroleum Corp. (MPC), sent a letter to the Board of Marathon making recommendations that would unlock $14 billion – $19 billion for shareholders.

Elliott urged Marathon should consider separating its chain of gasoline and convenience stores or break into three businesses which would be focused on retailing, refining and midstream operations which hold pipeline and storage assets.

In the letter and presentation, Elliott outlined recommendations that could result in an uplift of 60% – 80+% in the Firm’s stock by immediately dropping down all MLP-qualifying assets to MPLX and conducting a full strategic review of the Firm. Elliott noted that Marathon’s undervaluation is most glaring when the value of its three businesses is summed together.

In the affirming presentation Elliott lay out how public equity market valuations of same companies clearly support valuations of about $10.5 billion for Speedway, about $10.5 billion for Marathon’s refining operations, and about $26 billion for Marathon’s midstream holdings (comprising cash proceeds from drop downs).

The firm has institutional ownership of 80.10%, while insider ownership included 0.20%. MPC attains analyst recommendation of 1.80 with week’s performance of 8.21%. Investors looking additional ahead will note that the Price to next year’s EPS is 66.88%.

Shares of Pfizer Inc. (NYSE:PFE) [Trend Analysis] swings enthusiastically in regular trading session, it an advance of 0.29% to close at $31.57. Pfizer Inc. (PFE) released that expiration and results of the before reported tender offer to purchase for cash any and all of its outstanding 6.200% Senior Notes due March 15, 2019.

The Tender Offer expired at 5:00 p.m., New York City time, on November 18, 2016. According to information provided by Global Bondholder Services Corporation, the depositary and information agent for the Tender Offer, $1,944,082,000 aggregate principal amount of Notes was validly tendered previous to or at the Expiration Date and not validly withdrawn.

This amount comprises $9,576,000 aggregate principal amount of outstanding Notes tendered pursuant to the guaranteed delivery procedures described in the offer to purchase, dated November 14, 2016, and the related letter of transmittal and notice of guaranteed delivery, which remain subject to the holders’ performance of the delivery requirements under such procedures. Moving forward to saw long-term intention, the experts calculate Return on Investment of 7.30%. The stock is going forward its fifty-two week low with 14.82% and lagging behind from its 52-week high price with -14.01%. PFE last month stock price volatility remained 2.08%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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