Ok...So will take a risk and say the following. I believe WNR and many other refiners will have a strong rally shortly ..Very strong.. Way oversold and way over done. The Crack 321 is at fantastic levels. WNR must be
raking in profits right now. And yes, I read the chatter about the spread on this forum..So even if the crack gets banged down 10-even 20% its still very solid.......Ok, so there you have my guess- and I am sure I will take a beating if WNR and the others get clobbered even more next week. But its ok....Still have not changed my mind one bit on this sector. Oil prices are going lower and demand will rise ( not decrease!).
Unfortunately we are captive to fear, media garbage, propaganda, domestic political mess ups, and Europe-
but the world still needs lots of oil, and no refiners, no go anywhere...
So for sure, its been very painful if you are long like me...Very painful is an understatement...But......stay
focused and continue to accumulate. D
WNR's share price has little to do with the crack spread right now and lots to do with its ability to access cheap credit to service its debt.
The Hizbollah wing of the Republican party wants a credit contraction and they're working hard for it to occur. You heard likely Governor Perry say that if Bernanke printed dollars it would be treacherous and treasonous. That's the message from the Right today -- no more credit.
One of the lessons of the Great Depression was that credit was withdrawn too quickly by the Federal Reserve. So history is now repeating. The public was disgusted at the bank bailouts in 2008, the stimulus in 2009 and subsequent bonuses. It wrongly now links credit to the banksters good times and their unemployment. It wasn't causal, but that's Wall Streets fault for not being politically sensitive.
You can sit this one out in cash or risk it. You'll know how the expansion/contraction of credit story unfolds by September 30, 2011 when the next fiscal year budget is supposed to be agreed upon.
So far the US has avoided the riots in Greece and England, but watch this space.
The riots in Greece and England were very different. If you had asked the rioters in England what economic policies they wanted the government to pursue, you would have got blank looks. They were kids out for trouble and looting, it's that simple. Cameron's austerity is just living within your means, which is what the US needs to do. '
Dale, no depression here. I sold 40% before the CC and had sell orders in on the 60% at the openning bell 8-4-11. Sold 55 of the 60% within the first hour. Yes, at a lower price then the day before, but still at a nice profit.
Great part is I was able to reload on the stock at $13.15. Which is currently still showing a nice profit. If it drops much lower from here I will consider adding even more. GLTALs
you are correct in your thinking Doug, things are bleak now in the economy both domesticly and internationally. There are certain truths about petrolium products, there is no replacing them. There wont be a substitute anytime in the near future. Another truth, alcohol blending will disappear or be minimal when subsidies stop and they will stop.
Economies will heal....good luck to you.