I know that term applies to many of you drug addict types. However, I am talking about the spread between gasoline and crude. At the present, the crack spread is above $15. Keep in mind, when Valero Energy Corporation [[VLO]] , Tesoro Corporation [[TSO]] and co. were hitting all time highs, the spreads were not much more than $20.
Needless to say, the refiners must be bought.
Once again, courtesy of “The PPT,” here is a list of refiners, sorted by percentage of shares sold short:
WNR | Western Refining Inc (WNR) | 29.9 |
TSO | Tesoro Corp (TSO) | 19.8 |
SUN | Sunoco Inc (SUN) | 16.1 |
SUF | Sulphco Inc (SUF) | 12.8 |
FTO | Frontier Oil Corp (FTO) | 11 |
HOC | Holly Corp (HOC) | 8.7 |
PETD | Petroleum Development Corp (PETD) | 8.1 |
XTXI | Crosstex Energy Inc (XTXI) | 7.3 |
ALJ | Alon USA Energy Inc (ALJ) | 7 |
VLO | Valero Energy Corp (VLO) | 2.6 |
DK | Delek US Holdings Inc (DK) | 2.6 |
CVI | CVR Energy Inc (CVI) | 2.6 |
MUR | Murphy Oil Corp (MUR) | 2.4 |
EPE | Enterprise GP Holdings LP (EPE) | 2.3 |
CLMT | Calumet Specialty Products Partners LP (CLMT) | 1.8 |
SYNM | Syntroleum Corp (SYNM) | 1.5 |
HES | Hess Corp (HES) | 1.5 |
MRO | Marathon Oil Corp (MRO) | 1.2 |
In other news, I now hate people who incessantly buy Wells Fargo & Company [[WFC]] and U.S. Bancorp [[USB]] . I am telling you now: I will track them down and have their mustaches punched off.
By the way, natural gas may spike hard here too, due the fury of Ike. My weather reports say Ike will bring a bigger storm surge than Katrina. If you think that can happen, get long [[UNG]] , Natural Gas Services Group, Inc. [[NGS]] , Arena Resources, Inc. [[ARD]] , GMX Resources Inc. [[GMXR]] , TXCO Resources Inc. [[TXCO]] , NGAS Resources, Inc. [[NGAS]] and Ultra Petroleum Corp. [[UPL]] .
Also, considering the amount of damage that may be done, take a look at BlueLinx Holdings Inc. [[BXC]] , Builders FirstSource, Inc. [[BLDR]] , Pike Electric Corporation [[PEC]] and The Shaw Group Inc. [[SGR]] —just to name a few.
Top pick: Western Refining, Inc. [[WNR]]
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