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Sunoco might be worth a whole lot more if it were broken up, Cramer said during Monday’s Mad Money.
He got the idea after reviewing Alimentation Couche-Tard’s nearly $2 billion bid for Casey’s General Stores. Alimentation Couche-Tard wants Casey’s 1,500 Midwest convenience stores to increase its scale and the company, better known in the US as Circle K, was willing to pay $1.3 million per unit. Given that number, Cramer thinks Sunoco’s 4,700 stores throughout the East Coast and Midwest – and Sunoco itself – right now are grossly undervalued.
Sunoco’s market cap is $3.6 billion, or less than $3 billion if you subtract its stake in Sunoco Logistics Partners, its pipeline master limited partnership (MLP). But the stores alone would be worth $6.1 billion if they fetched the same price that Alimentation Couche-Tard is paying for Casey’s. And that’s excluding Sunoco’s refining, logistics, coking coal and chemicals businesses.
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