Continuing the oil play, I introduce you today to Western Refining (WNR). This stock is a great long-term play with the rising price of oil. They recently got a 50% haircut when there was high speculation that they will not be able to pay off their high debt. Last week, they announced that they were making a stock offering that would generate the necessary revenue to get rid of the debt. Worse case scenario, we’re looking at them surviving another 5 years. Best case scenario, this thing is gonna move up high and I expect doubling within the next year.
Technically, the stoichastics look good. It’s past the bottom 20 right now. It’s had a huge drop and we have a strong support coming in at $7.35. The stock also doesn’t reflect the market very well which works to our advantage when this market could drop again below 7,000 on the dow or continue its move up. There was great insider trading buying in at $9 after the money came in. I’d suggest getting in soon.