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Refiners are oversold, Tudor Pickering says, after margins have been squeezed as WTI prices...

Refiners are oversold, Tudor Pickering says, after margins have been squeezed as WTI prices climb much faster than Brent. As North American supply growth continues, the spread will widen and support refiners' stocks, the firm says; with refiners off 20%-40% from their peaks, believers in North American crude supply growth should be buying here. CVI +6.3%, HFC +4.7%, PSX +2.9%, TSO +2.5%, VLO +1.9%.
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Comments (5)
  • ComputerBlue
    , contributor
    Comments (879) | Send Message
     
    Duh..
    8 Jul 2013, 02:54 PM Reply Like
  • timestacker
    , contributor
    Comments (89) | Send Message
     
    VLO earnings out on July 23.
    TSO earnings out on Aug 1.

     

    If these two stocks continue to decline after earnings it is time for this trader to sell. Tired of waiting around and watching these two stocks decline while other stocks in my portfolio have are climbing nicely the past 3 months. Of course if they hiked their dividend to say 3 percent...............
    8 Jul 2013, 04:14 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I do not expect WTI to keep increasing. Sure, I could be wrong - just calling it as I see it. A selloff in refiners has historically presaged a selloff in crude - this selloff started many weeks ago and crude dropped to 92. Then it soared on the swing trade and global risk events. The refiners have not continued their selloff, but are not surging either. I do not consider them a huge bargain here, as several are still 50% or more above where they were a year ago.
    8 Jul 2013, 05:04 PM Reply Like
  • snoopy44
    , contributor
    Comments (984) | Send Message
     
    hawk:
    Where they were a year ago is largely irrelevant. Several of them are trading almost below "liquidation" value which is patently ridiculous. HFC trading at a PEG of 0.4? Are you kidding me? They are basically giving the stock away. The risk-return does not get any better than this.

     

    S.
    8 Jul 2013, 10:44 PM Reply Like
  • JEHUNDEN
    , contributor
    Comments (36) | Send Message
     
    VLO earnings crtical. Good earnings there could easily be applied to HFC probability.
    8 Jul 2013, 10:42 PM Reply Like
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