Hi David. It's currently a balmy +5 degrees and very sunny here :) Want to go for a spin in the car out on the lake ice?
The gulf crack spread can be found at: www.bloomberg.com/quote/CRKS321C:IND
WNR management has stated that this crack spread is a proxy of WNR and is what they use for their headging contracts.
Stay warm and dry :))
post q4 earnings you will see that wnr is trading at just under 3x ev/ebitda. this is about as cheap as it gets in the sector and that metric could easily rise to 5.this is why i think we can see wnr rally to between $48 and $60. management is saying they want to build up their cash balance which makes ZERO sense to me. they have a very low debt/equity ratio and money is cheap. imo they need to either pay another special dividend or build out the permian basin pipeline system and put that money to work.
Soozanie, where has WNR said they want to build up their cash balance. If they did, why issue, not one but two, special dividends at the end of 2012? they will use another $300+ million in a few months to pay off the senior notes. I think they know a pile of cash invites the sharks.