Delek Shares Jumped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

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 Delek US Holdings (NYS: DK) are on the mend today. The petroleum refiner was up a little more than 10% in early trading after reporting that normal operations had been restored at its Tyler, Texas, plant.

So what: The news comes on the heels of a report in the industry trade publication Offshore that Israeli parent company Delek Group is negotiating to acquire a majority stake in diversified real estate firm Cohen-Development.

Now what: If there are synergies that offer a rationale for the deal, it's not obvious from Offshore's reporting, nor from the company's records in S&P Capital IQ. Yet synergy may not be the point. Delek Group has a diverse array of holdings, including stakes in El Airlines and Tower Semiconductor (NAS: TSEM) , among others. The implication? While Delek US investors have good reason to celebrate the end of trouble in Texas today, there's much more to the company behind this company. Have a different take? Please weigh in using the comments box below.

Interested in more information about Delek US Holdings? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners