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Inter Parfums, Inc. (IPAR), KKR & Co. L.P. (KKR): High-Quality Companies Coming off Their 52-Week Highs

Published on July 3, 2013 at 1:22 pm by The Motley Fool in News

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The company mixes growth in free cash flow (FCF) with growing shareholder return.The company has a processing capacity of more than 1.5 million barrels per day (mmbd), supplies product to more than 5,000 independent retail outlets, almost 1,500 company-operated Speedway-branded stores and also operates more than 9,500 miles of pipelines.

With its low net debt value (the company has a $1.3 billion net cash position) and its strong FCF outlook (13% FCF yield), I think Marathon Petroleum Corp (NYSE:MPC) can continue to repurchase shares beyond the recent authorization ($2.5 billion). Paying a 2% cash dividend yield, growing its dividend at a 47% yoy pace and trading at 2013 7.3 times P/E, I think Marathon Petroleum Corp (NYSE:MPC) is a good proposition within its space.

Bottom line

For long term investors, a sell-off constitutes good news. During the sell-off is when you can find great value for a good price. I do not know whether the recent market sell-off is over or not (nobody does), but what I can say is that these are the best times to look for value. All the companies named above hold great value. Most importantly, they also transform the value being created into cash flow for shareholders (dividends and buybacks). It’s time to start looking.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Federico is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article High-Quality Companies Coming off Their 52-Week Highs originally appeared on Fool.com is written by Federico Zaldua.

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NYSE:KKR NYSE:MPC NASDAQ:IPAR Inter Parfums Inc (IPAR)KKR & Co. L.P. (KKR)Marathon Petroleum Corp (MPC)Show more...Show less