The profits of the refiners are proportional to the crack spread. In the case of ALDW the inland locked crude discount increased this crack spread by 10% to even 20%, this was especially true because ALDW used WTS rather than WTI. The new pipeline unlocked the crude to the Houston pipeline hub. The bottom line is that ALDW has lost its competitive edge, the price plummeted.
By mid-2014, the WTI will overwhelm again the pipeline throughputs. Again the WTI, in some cases, will be again landlocked; the crack spread will again be a competitive for the inland refiners, therefore ALDW.
I don't have the deep pockets that Scotti has, but around 10:00 a.m. (PST) I bought 525 shares at $14.40. I am the new boy on the block. I got a lead earlier this year from a buddy who bought around February at about $25 or $28. He is crying like a baby. Even with the 18% divi, he is not doing well.
I tried to buy last month at $14.32 when it plunged, but missed out, however, this morning when I saw it fall I sold most of my WFT yesterday before it plunged and replaced it with ALDW.
This seems like it has good potential to get up to $20 by years end, so, if it does, then that will make this White Man a happy camper.
no, someone was buying all the 14.70 they could. I know they are meeting with institutional investors today at the conference. Someone didn't like what they heard and sold, then someone did and bought?