The spread between Brent and WTI has narrowed dramatically over the last several months to single digits. The ability to get WTI oil to the Gulf Coast has killed the margins on the refiners. My guess is that these spreads eventually widen but it is not likely that they widen to the highs in late 2012 and early 2013. In addition, ALJ has had some issues at both Krotz Springs and Big Springs so it will be interesting to see what kind of quarter they produce. The stock has been in a downdraft and it looks like it may hit $12 at some point although it found some support on Weds in the $12.90's and bounced. Hopefully the retail gas stations, the continued de-leveraging of the balance sheet, and continued improvement in asphalt will help offset the spread and crack compression to a degree. The California refineries will be about the permitting process and how the infrastructure projects are going as the build rail facilities to bring WTI to Bakersfield and Paramount. Any color is appreciated from the message board.
Whoa! you just said a mouthful. Seems you covered quite a bit of territory with plenty of color yourself to fill a question and answer session. What more can one say? The lp certainly doesn't have any bottom at the moment either. If you find anything pass it on.
ALJ and ALDW stock prices are saying a mouthful today - getting crushed on an absolute and relative basis as the market has ripped higher over the last few days and these names are at critical support. ALJ better hold here at $12 (as I mentioned in my original post or $10 is the next stop.