• gdevone
    Looking to start a position in an oil refiner soon. considering $HFC $VLO or $PSX if they continue to slide. Anyone have any recomendations?
    7/10/13
    Reply (30)
    • DAG Investments: I recently started averaging in to a new $VLO position and plan to complete the position after next week earnings.
      7/10/13
    • DAG Investments: I have some exposure if it starts running and can lower my average if it declines further Either way has more upside potential than downside
      7/10/13
    • gdevone: I was thinking of doing the same, been watching $VLO for a while now. thanks DAG
      7/10/13
    • DAG Investments: you're welcome. fyi, i'm a long-term investor, not a trader, so i'm not bothered by short-term paper losses that are certainly possible
      7/10/13
    • gdevone: As am I. Well I'm still a beginner investor but I have a long-term mentality
      7/10/13
    • losbronces: Of the three, I think $PSX has the most upside. Recent article here: http://seekingalpha.com/a/wyw4
      7/10/13
    • DAG Investments: That's a good start. Just be sure to do your due diligence and average into your positions. Best of luck.
      7/10/13
    • DAG Investments: @gdevone i hope you didn't buy yet ... bad news just out from $VLO http://bit.ly/1avBjmH
      7/11/13
    • gdevone: Fortunately I haven't yet. Looks like it brought down a lot of the other refiners after hours too. thanks for the heads up
      7/11/13
    • DAG Investments: Great. Yes, "pin action" is taking them all down since Valero is the first to comment on costs issues for the refiners.
      7/11/13
    • DAG Investments: Even so, I'm considering adding to my $VLO holdings at the open since an initial selloff on news is often the most severe part of a selloff.
      7/11/13
    • gdevone: That may be my entry point then and add later on depending on what happens with oil prices and the brent-WTI spread
      7/11/13
    • DAG Investments: there may be another dip after the actual earnings report. i'll probably buy half of what i want in the morn, the other half after earnings.
      7/11/13
    • DAG Investments: one thing to be careful of is if we get a market correction between this & next earnings. stocks already under pressure tend to fall hardest
      7/11/13
    • DAG Investments: best of luck with whatever you decide is right for you
      7/11/13
    • gdevone: I'll keep that in mind. Thanks for all the insight and best of luck to you as well
      7/11/13
    • DAG Investments: Thanks. So far looks like, unless the market pulls back, the worst of it might've been after market yesterday when it got as low as $32.95.
      7/12/13
    • gdevone: Do you think $HFC has as much or more potential upside with their comparable dividend plus special dividends and low valuation?
      7/12/13
    • gdevone: They seem to fit a lot of Ben Graham's criteria
      7/12/13
    • DAG Investments: I don't recall why I chose VLO over HFC and, once I did, I stopped looking at HFC at all so I don't have an opinion of its potential, etc.
      7/12/13
    • DAG Investments: However, I do recall that VLO & HFC were the only two that I seriously considered and it was a very close call for me. HFC is very good too.
      7/12/13
    • gdevone: Ok good to hear, I like both very much and think they'll move similarly in the long term
      7/12/13
    • DAG Investments: i agree for the most part. there are obviously always company-specific factors.
      7/12/13
    • DAG Investments: since you mentioned you're a new investor, one additional thought then i gotta go ...
      7/12/13
    • DAG Investments: the fact that VLO buyers came in so fast and so strong after bad news and before earnings is a very positive sign.
      7/12/13
    • gdevone: that makes sense. just entered in at 35.10
      7/12/13
    • DAG Investments: just in case you didn't know, most pros will tell you that it's always best to "stage in" or "average in" to any position ...
      7/12/13
    • DAG Investments: to buy in 3-4 chunks instead of one so you reduce the need to try to catch a bottom. if it goes down after first buy thats when you buy more
      7/12/13
    • gdevone: Seems more sensible than trying to predict a bottom. Being, a recent college grad I have limited funds to invest with so fees and commission
      7/12/13
    • gdevone: tend to add up. but i understand the concept and I'll try to do it while being cost beneficial
      7/12/13