Since crude oil started its collapse in the summer, we've stayed away from companies that generate the bulk of their revenue from oil. Instead, we've written about companies that have benefited from the collapse, such as oil refiners and airlines. With that being said, we believe that Global Partners LP (GLP) is one of the strongest investment opportunities available in the market right now. As mentioned in a recent SA article, most of Global Partners revenue is uncorrelated to oil prices and thus the dramatic downward move in their share price may be overdone. Global Partners is a limited partnership that purchases, sells, and transports petroleum products such as crude oil, gasoline, and gasoline blend stocks. The company currently has a market cap of $1.07 billion, with a stock price beta of $0.89. We believe Global Partners will vastly outperform the market over the next twelve months due to the company's extremely attractive valuation, solid profitability, and the strong bullish sentiment showed by the "smart money" on the street.
Our analysis focuses on identifying and exploiting stock market "anomalies." We've identified a variety of different academically tested metrics that have a long track record (over +50 years) of predicting stock returns. We'll provide links to the academic papers that fuel our analysis as we progress through the report so you can see for yourself whether to trust the metrics we rely on. Click here to see a detailed breakdown of the prominent academics (many of whom manage billions of dollars) and their contributions to the field of stock research that we draw inspiration from. Continue Reading Â»