Quick Win by the Algorithm: Andeavor (NASDAQ: ANDV) Returns up to 25.11% in 14 Days

“We are excited about the opportunities we see in our business to increase gross margin, improve productivity and deliver synergies from our acquisitions. As always, we remain focused on disciplined capital allocation that delivers the most value to our shareholders.”

-Said Gregory J. Goff, Chairman, President and Chief Executive Officer of Andeavor

[Image Source: Wikimedia]

Andeavor, through its subsidiaries, operates as an independent petroleum refining, logistics, and marketing company in the United States. The company operates in three segments: Marketing, Logistics, and Refining.

  • The Marketing segment sells gasoline and diesel fuel through retail, branded, and unbranded channels. This segment operates a network of 3,255 retail stations under the ARCO, Shell, Mobil, and SUPERAMERICA brands.
  • The Logistics segment gathers and transports crude oil by pipelines, as well as by trucks. It operates approximately 13 million barrels of crude oil, feedstock, blendstock, refined product, and asphalt storage tanks.
  • The Refining segment buys and refines crude oil and other feed stocks into transportation fuels, such as gasoline and gasoline blend stocks, jet fuel, and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke, calcined coke, and asphalt. It also sells refined products in the bulk market principally to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines, and marine and industrial end-users in the western United States. This segment owns and operates 10 petroleum refineries with a combined crude oil capacity of approximately 1,157 thousand barrels per day.

The company was formerly known as Tesoro Corporation and changed its name to Andeavor in August 2017. Andeavor was founded in 1968 and is headquartered in San Antonio, Texas.

[Image Source: Andearov Official Website]

On April 15, 2018 I Know First issued its bullish forecast for Andeavor’s stock. The stock price jumped from $110.89 to $139.13 per share in 14 days in a good agreement with this bullish forecast for ANDV that returned up to 25.11%.

What happened that drove the growth? The reason lies in the company’s definitive merger agreement with Marathon Petroleum Corp:

  • Creates a leading nationwide integrated energy company with an initial enterprise value greater than $90 billion
  • Substantially increases geographic diversification and scale positioning the company for long-term growth and value creation
  • Immediately accretive to earnings and cash flow per share
  • Expect about $1 billion of tangible cost and operating synergies, driving substantial long-term earnings and cash flow per share accretion
  • Commitment to maintaining investment grade credit profile

MPC will acquire all of ANDV’s outstanding shares, representing a total equity value of $23.3 billion and total enterprise value of $35.6 billion. ANDV shareholders will have the option to choose 1.87 shares of MPC stock, or $152.27 in cash subject to a proration mechanism that will result in 15% of ANDV’s fully diluted shares receiving cash consideration. This represents a premium of 25% to ANDV’s closing price on April 30, 2018. MPC and ANDV shareholders will own approximately 66% and 34% of the combined company, respectively.

On April 15, 2018, I Know First issued a bullish 14 day forecast Andeavor (NASDAQ: ANDV). The forecast illustrated a signal of 40.27 and a predictability of 0.28. In accordance with the forecast, ANDV’s stock returned 25.11% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish ANDV forecast on April 15, 2018

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Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.