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Wednesday, December 7, 2011

Potential Takeover Candidate? (NYSE: DK)

Shares of DK fell by 2.70% or $-0.3/share to $10.81. Delek US Holdings Inc. is trading at a price to book ratio of 0.99. This indicates that the value of the company's underlying assets exceeds today's market price. The PEG is 0.22 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.1. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 371650 shares of DK exchange hands on a given day and today's volume is recorded at 491469. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Delek US Holdings, Inc. is a diversified energy business focused on petroleum refining, wholesale sales of refined products and retail marketing.