My old favorite WNR is selling off hard today. I do not care what the news is because I know where the stock will eventually trade– and that is much higher. HFC, PSX, MPC, DK and ALJ are all buys on the dips, based upon the premise that US domestic oil production will continue to increase, as well as demand for distillates, contrasted by a lack of pipeline infrastructure.
Being an experienced investor in this space for many years, I can tell you first hand, the sell offs are brutal. I recall riding a massive position down from $18 to $11, only to sell it later north of $24. Keep an eye on these stocks and look to get in, for WTI-Brent spreads are $18 and 321cracks are north of $23.
Today’s sell off was a walk in the park. If I’m right about the bull trend, we run higher tomorrow and fast. I added to my NAV position because that’s what I’m required to do–buy stocks when they are cheap and sell them higher.
Top picks: VHC, NAV