Formerly known as Valero LP before being fully spun off from the refinery giant, NuStar is one of the largest independent operators of terminals and pipelines for the transportation of gasoline, diesel and ethanol, with 6,200 miles of pipeline and 35 million barrels of storage capacity.
To serve the fertilizer industry, NuStar also has plans to expand its current 2,000-mile ammonia pipeline that runs from the Gulf coast of Mississippi to Nebraska and Indiana. And in an effort to become a major player in asphalt -- a neglected niche in the industry which its veteran chairman believes will become a premium product -- NuStar purchased two plants this month. Its chairman, a Valero founder and former CEO, put some of his own skin in the deal by buying $2 million worth of his company's shares on the open market on April 13 and March 29 at just a touch below the current price. Now, for the unicorn chasers out there, I will throw you one idea for Un-Earth Day, too. Small-cap Darling International(DAR Quote), which collects used cooking oils and animal fats from restaurants and refines them into tallow, grease and proteins for the soap, pet food, cosmetics, livestock and leather goods industries, and now for biofuels. Its veteran managers know they have a formerly neglected commodity that could become very valuable and are considering plans to build biodiesel refining facilities to take advantage. Darling is very cheap: At $7.30 a share, it is trading at around 16 times next year's estimated earnings per share despite growth well north of 25%. As a skier, camper, cyclist and card-carrying Sierra Club member since the '70s, it doesn't give me any pleasure to make these observations. But it's valuable for investors to see the world as it really is, not as they wish it to be -- and after all, you can always tithe 25% of your profits to an environmental cause.| Un-Earth Day Portfolio | ||
| Company name | Market cap | 4/23/07 price |
| Peabody Energy (BTU) | $12.7 billion | 48.22 |
| Arch Coal (ACI) | $5.2 billion | 36.5 |
| Westmoreland Coal (WLB) | $217 million | 24.07 |
| Fording (FDG) | $3.5 billion | 24.07 |
| BHP Billiton (BHP) | $144 billion | 49.04 |
| Teck Cominco (TCK) | $16 billion | 77.02 |
| Joy Global (JOYG) | $5.4 billion | 49.94 |
| Bucyrus International (BUCY) | $1.9 billion | 60.27 |
| Metso Oyj (MX) | $7.9 billion | 56.33 |
| ABB Ltd. (ABB) | $40 billion | 18.75 |
| Union Pacific (UNP) | $31.5 billion | 116.15 |
| CSX Corp. (CSX) | $19 billion | 44.72 |
| ADA-ES (ADES) | $109 million | 19.45 |
| NuStar Energy (NS) | $3.2 billion | 68.5 |
| Darling International (DAR) | $607 million | 7.52 |
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