Delek’s Exit: A Spot of Prudence

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One gathers Towle & Co. – a firm with, shall we say, a penchant for the obvious – has rather tidily disposed of its entire stake in Delek US Holdings. A mere $17.30 million, of course, but one always appreciates a clean sweep. They filed the paperwork on February 12th, naturally. The timing, as with most things, is everything.

A Modest Correction

The sale encompassed all 536,133 shares held during the fourth quarter. A decisive move, wouldn’t you say? One suspects a touch of profit-taking, rather than outright panic. Though, given the recent performance, one could be forgiven for a flutter of nerves. The net result, for Towle & Co. at least, is a rather substantial reduction in exposure.

The Usual Suspects

As of February 11th, their portfolio, one observes, remains remarkably… conventional. HOUS at $16.08 million, AMR at $12.11 million, and UNFI trailing close behind at $11.44 million. A perfectly respectable collection of assets, if one is inclined towards the predictable. Gold, naturally, at $11.08 million. One always requires a bit of glitter. And MGA at $10.79 million, for those with a taste for the slightly more obscure.

Delek, it must be said, had been rather enjoying itself, soaring a staggering 86.0% over the past year. A performance that, frankly, was beginning to feel a trifle unsustainable. The S&P 500, meanwhile, plodded along with a mere 14% gain. How dreadfully pedestrian.

A Brief Overview (For Those Who Care)

Metric Value
Price (as of market close 2026-02-11) $34.52
Market Capitalization $2.07 billion
Revenue (TTM) $10.67 billion
Net Income (TTM) ($514.90 million)

The Business, Apparently

Delek, one gathers, produces and markets refined petroleum products – gasoline, diesel, the usual – and operates convenience stores. DK, Alon, and 7-Eleven, if one is keeping score. They also dabble in logistics and transportation. A perfectly competent operation, though hardly groundbreaking. They cater to oil companies, independent refiners, and a variety of other tiresome entities.

A Word to the Wise

An 86% run, my dear, is rarely a sign of lasting virtue. It’s usually a symptom of excessive optimism, and a rather dangerous one at that. Selling into such strength, one suspects, isn’t a sign of fear, but of a certain… discipline. A quality sadly lacking in many of our contemporaries.

Delek’s third-quarter results, while superficially encouraging, were bolstered by improved refining margins and a rather fortuitous EPA grant. Integrated refiners, of course, can generate impressive cash flow when the commodities gods are smiling. But they are, by their very nature, cyclical. A truth that many seem determined to ignore.

One trusts Towle & Co. knows what it’s doing. Though, frankly, one has one’s doubts. Still, a tidy exit is always something to be admired. Especially when the music is still playing.

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2026-02-13 00:42