Is this overbought before earnings in a couple of weeks or what. This could be over 30 before markets open tomorrow but also could face downgrade if analyst thinks its too expensive based on valuation. Any thoughts or do I cash in tomorrow and wait for earnings.
No doubt, its had a huge run last week, and no one went broke from taking a profit. BUT, its a cheap stock relative to its peers (wnr, mpc,vlo, hfc...hfc is best of breed though) and still has room to run. Friday looked like a classic short squeeze and I'm sure people will be taking new short positions. There is a small float and according to Yahoo, there was a short percentage of 10%. Insiders still own the bulk of the shares. I would either sell calls (which I've been trying to do but no demand), or wait and sell right before earnings. I think expectations are getting a little distorted. If this pig hits 34, I'm out and will buy after the earnings drop. DK, WNR, and HFC have been great trades all 2012, but I don't think they will repeat this year due to crack margins narrowing and new pipeline capacity coming online to reduce the Cushing glut.
On that note, ARII and GBX are interesing stories as most oil coming out of Baakan and others have delivered by rail, and the output of these fields is increasing which leads me to believe more demand for tanker cars...plus when/if the economy turns around other rail cares will be needed. However both companies are expensive I think.
The last company I like is Daktronics DAKT. I thknk this is cheap stock, best of breed, and will see a tremendous increase in revenue from the rebuild of Sandy, transportation spending, advertisers replacing billboard signage as advertisers upgrade, and growth from China.