Kontrarian Korner #28 - Calumet w/ Karst Research & Raging Bull Capital

Yesterday I had two guests on the podcast, Karst Research and Dylan (aka Jake LaMotta, aka Raging Bull Capital), to talk about Calumet $CLMT . You should all go check out their Substacks below. You can also find them on Twitter (here and here). It was an interesting conversation on a stock that has several catalysts lined up in the near future. We talked about the DOE loan that is expected to close before year end, the different segments of the business, and more.

Podcast Summary

* We talked about the 30,000 foot view of Calumet, which has transitioned from a busted MLP with no dividend to a C-corp earlier this year.

* The terms of the DOE loan, which was announced in October, and expected to close by year end.

* Why Karst views the DOE loan as a balance sheet event, and the deleveraging and reduction in interest expense that will happen as a result of the loan.

* How Dylan thinks the DOE loan derisks the business for the next couple years.

* What SAF (sustainable aviation fuel) expansion might look like for Calumet.

* I play devil’s advocate questioning the long-term viability of SAF.

* Their thoughts on what a potential monetization event might look like (and its timing), whether it’s an IPO of the Montana Renewables segment, or a sale of one of the other segments.

* If there are any risks to Calumet from the incoming Trump administration.

* Book Recommendation from Dylan: How The World Really Works by Vaclav Smil.

* Book Recommendation from Karst: Throne of Grace by Bob Drury & Tom Clavin.

Disclaimer

All three of us currently have an investment in Calumet. You should do your own research before making any investment decisions. Different investment strategies have different risk/return profiles which should be considered before making any decisions.

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