Calumet Specialty Products

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Market Cap: $1.3 billion

Calumet Specialty Products ( CLMT) is a refiner and processor of hydrocarbon based products. The company's end products, which are used for industrial and consumer purposes, include base oils, jells, ointments, petroleum sulfonates (which are used in metalworking and oilfields), solvents, wax and mineral oils. I would consider the company to be a midstream specialty chemical company.

Calument, which is structured as a limited partnership, distributes $2.12 a share to its shareholders, which equates to a yield of about 8.6%; it's one of the highest-yielding energy stocks. The stock sells for 12 times 2012 estimates, and earnings are expected to grow by 20% in the following year.

I value the stock at $30, hence giving an investor a 30% total return to my target price this year.

Calumet is also one of the top holdings at David Tepper's Appaloosa Management as of the most recently reported quarter, comprising 3.4% of the total.

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