Western Refining, Inc.
Short squeezes can be very profitable, with prices moving 10-20% in one day the risk/reward ratio is tempting. However, picking stocks that are ripe for a short squeeze is hard and risky. Indeed, Foolish investors should never invest just to benefit from a squeeze.
Having said that, personally, I believe that even if a company has 50% of its stock out on loan for shorting, if the company has more »
During the past month, petroleum-refining companies have rallied: Shares of Valero Energy (NYSE: VLO) rose by nearly 3.8%. Based on the latest development in the oil market including the sharp rise in the price for oil, will shares of leading refining companies keep rising? Is the refinery industry heating up?
Refinery inputs are rising
Valero Energy (NYSE: VLO) has dropped significantly since the beginning of February, from more than $46 per share to only $36 per share. Scott Black, the Chairman and CIO of Delphi Management, has taken advantage of the low stock price to add more Valero’s shares to his portfolio. Andreas Halvorsen of Viking Global is also bullish about the firm, owning more than 6.7 million shares in the company more »
North American midstream growth is removing transportation bottlenecks for crude oil, and North American refineries have to face the music. The construction of pipelines and increase in rail capacity are starting to reduce some inventories. These factors coupled with weak European demand for Brent crude oil have caused the WTI-Brent spread to fall. Refineries have been able to make fat profits by refining cheap WTI crude oil and exporting it more »
Hedge funds’ small-cap stock picks can be sources of alpha, even when working off the fairly old information from 13F filings. We have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year, and our live testing of this strategy, which began in September 2012, has since returned 38%. Our explanation for this result is that more »
Western Refining (NYSE: WNR) is a small, often overlooked refiner that operates primarily in the oil-soaked markets of Texas and the American Southwest. Although the company rarely attracts attention from high-flying fund managers or Wall Street analysts, it is noteworthy for several reasons. For starters, it has a solid dividend yield of 1.5 percent and recently issued a $1 special dividend that amounted to a 5 percent payout at more »
Oil prices crashed recently as investors placed further bets on a slowing global economy, especially after what is happening in Europe and China. The black gold was down $3 a barrel for the month of April. The verdict may not be out as yet if the call regarding oil prices is correct, and instead of breaking heads about it, investors would do well to focus on undervalued plays which are more »
Refiners witnessed a steep decline last week. The drop was caused by the Environmental Protection Agency's proposal of new pollution standards for gasoline. I do not believe the new standards will be accepted due to the costs being much higher than the benefits, resulting in the refiners returning to previous levels.
The proposed standards would require refiners to reduce the amount of sulfur in gasoline to 10 more »
Refiners have seen a steep decline over the last 2 trading days. The drop has been caused by the Environmental Protection Agency's proposal of new pollution standards for gasoline. I do not believe the new standards will be accepted due to the costs being much higher than the benefits, resulting in the refiners returning to previous levels.
The proposed standards would require refiners to reduce the amount more »
Although many large oil-and-gas companies have been spinning off their lower-margin downstream operations, these downstream oil-and-gas companies, or refiners, are one of the best ways to play the impending boom in shale oil in North America.
This will come as the increase in North American-sourced oil will give refining companies a distinct advantage.
The impending influx of North American-sourced oil will be a positive for the North American more »
An analyst’s call can be a major swing in momentum for a stock, creating a domino effect of revised outlooks and either buying or selling. Here are four stocks that traded with excessive volatility last Friday thanks to the notes issued by analysts; these are all calls worth noting that might not result in long-term gains.
Western Refining (NYSE: WNR) was one of the top 7 stocks for 2013 recommended by The Motley Fool’s analysts. Its stock price has increased significantly in the last 3 years, from only $5 per share in the middle of 2010 to nearly $36 per share. Should investors buy Western Refining when it has already reached $36, its 52-week high? Let’s see.
Western Refining is an independent more »
Over the past year, one of the strongest market subsectors has been refiners. Shares of all major refiners, Phillips 66 (NYSE: PSX), Western Refining (NYSE: WNR), Valero (NYSE: VLO), Tesoro (NYSE: TSO), and Marathon Petroleum (NYSE: MPC) have all been very stong. While I expect this trend to continue into 2013, there are two refining stocks which I am especially bullish about: WNR and TSO.
Despite trading at more »
Refinery companies are usually slow movers because their businesses are considered to be low-margin and accident-prone. However, their businesses are doing better because of cheaper natural gas and domestic crude oil.
Valero’s (NYSE: VLO) stock price reflects a change in how refining companies are now viewed. Over the last 52 weeks, its stock price has jumped 59%. For a refining company, such a large rally is unusual, and I more »
A shareholder-friendly company holds certain advantages over a typical stock, if in fact it returns capital to shareholders in terms of performance as well as in yield. In this market there are numerous examples of such stocks, and in this article I am looking at five that are raising their dividend and might fit into your portfolio.
Increase Over 2012
2 more »
Valero Energy (NYSE: VLO) has been reiterated by TheStreet Ratings as a buy on the basis of the company's strengths demonstrated in areas such as revenue growth, strong cash flow from operations, and a solid financial position with reasonable debt levels as well as good stock performance. The analysts are of the opinion that these strengths outweigh the below par growth in net income. Valero, through its subsidiaries, is more »
Refiners have been on a roll. For the year to date, they have soared in value. Valero is up 47.3%, Alon USA is up 59.4%, and Tesoro is up 76.2% to name just a few. This is particularly amazing in light of rising concerns about looming EPA regulations. Will this bull run continue? And does upside outweigh downside? These are the central question that drive my analysis more »
We track over 400 funds and investors and have calculated the value-weighted returns for all funds in the 1,500 largest stocks, while compiling a list of the top performing funds for the first three quarters of 2012. The returns are based on the fund’s 13F long positions only, as we do not have access to their short positions. Balyasny Asset Management was a top performing hedge fund during more »
Valero Energy’s ) third quarter earnings call is just days away. The company appears undervalued, but so does most of the oil and gas industry. Instead of waiting for mindless, computer generated earnings analysis to distort our perceptions, lets define some criteria for success or failure ahead of the call.
Something’s Happening Here
Average analyst earnings estimates for Valero have risen 21% over the past three months from $1 more »
Oil refineries are well positioned to take advantage of heavy oil and the lack of oil transportation infrastructure in the U.S. With low interest rates the cost of debt necessary for capital expenditures has significantly declined. Still, within the industry there are some refiners like Alon USA Energy (NYSE: ALJ) which have high debt loads, low ROI, and should be avoided. Others like HollyFrontier Corp. (NYSE: HFC) have a more »
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