Diamonds and Dogs
We closed out the third quarter, the worst quarter in five years led by the energy space, but today's diamond is bucking that trend. PBF Energy (PBF) is jumping 10% after acquiring Exxon Mobil's refinery business in Torrance, California. The plant has been closed since the beginning of this year due to an explosion. PBF bought it for $537.5 million and will reopen it in the middle of next year. In the deal, Exxon agreed to make repairs on the refinery and also hand over their lubricant distribution center in Vernon and two refined products terminals in Vernon and Atwood. Consumers in California like the deal because the reopening of the refiner could bring back on line 10% of the California oil supply thereby reducing prices at the pump. A win win.
National coffee day was this week, but that didn't seem to help the American classic Dunkin Donuts (DNKN). The stock is down more than 10% after the company lowered third quarter and full year estimates. The company is also closing 100 low margin Dunkin' Donuts stores by the end of next year to cut costs. Hopefully the Hurricane bearing down on the East coast won't close more stores due to flooding.