Good opportunity to buy refiners stocks like Valero

Zob Ahan

Zob Ahan

Elite Member
#1
Feb 4, 2005
17,481
2,233
#1
The stocks are all down. Valero down over 8%



** VALERO ENERGY CORP, $51.53, -7.97 pct
** HOLLYFRONTIER CORP, $46.4, -5.25 pct
** PBF ENERGY INC, $29.35, -6.65 pct
** MARATHON PETROLEUM CORP, $81.63, -5.58 pct
** WESTERN REFINING INC, $38, -6.50 pct


U.S. officials told energy companies they may export a variety of ultra-light oil if it has been minimally refined
Analysts said exports could push up U.S. crude prices, hurting refiners, who have benefited from a glut of cheap U.S. shale crude
 
Zob Ahan

Zob Ahan

Elite Member
#3
Feb 4, 2005
17,481
2,233
#3
Valero & the others will go back up as soon as next week. This is a quick money maker or even a long term hold. VLO pays 2% div too.
 
Zob Ahan

Zob Ahan

Elite Member
#6
Feb 4, 2005
17,481
2,233
#6
Already up 3%. BT jan commission yadet nare.:belly:

Everything else is down. If the stock market was up the pop would have been closer to 5 or 6%.
 
TeamMeli

TeamMeli

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#7
Feb 5, 2014
9,312
313
Las Vegas, NV
#7
I'll probably buy some but just a word to the wise first thing they teach us is to diversify your portfolio. If you want to invest in the stock market, I highly recommend starting with an S&P 500. That way if a few companies go belly up, you won't be in the poor house. If you want to invest in a stock like Valvero you should have other stocks as well that's all I'm saying. I just checked right now and it's up 1.7% to 52.27/share. Not a bad stock this month it's been hovering around 52-54 shares so no crazy leaps.
 
Bache Tehroon

Bache Tehroon

Elite Member
#8
Oct 16, 2002
39,533
1,513
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#8
TeamMeli said:
I'll probably buy some but just a word to the wise first thing they teach us is to diversify your portfolio. If you want to invest in the stock market, I highly recommend starting with an S&P 500. That way if a few companies go belly up, you won't be in the poor house. If you want to invest in a stock like Valvero you should have other stocks as well that's all I'm saying. I just checked right now and it's up 1.7% to 52.27/share. Not a bad stock this month it's been hovering around 52-54 shares so no crazy leaps.
Click to expand...
This is my rule of thumb for money:

Your portfolio and the stocks you buy to play around are quite different. Everyone should really have 3 portfolios. One for retirement, one for holding money and generating immediate income, and one for playing around with (gambling).

The retirement portfolio should be a boring one for the most part, diversified heavily into moderate to low-risk stuff. Depending on your age you should decrease the risk as time passes. At least 10-15% of your income should continuously be saved in a retirement portfolio (like a 401K or Roth or RRSP or whatever tax-sheltered saving account your country of residence offers).

The holding portfolio is the one that you diversify into higher risk but dividend paying stuff. Even losing 2%/year on this portfolio still beats holding cash in your account. Maximum balance of your holding portfolio should not be more than 6 months of your income. If it's more, you should consider buying real estate or physical gold with some of it.

The gambling portfolio is fun and frustrating at the same time! It's really a gamble and often a losing venture! You should really have no more than a month of your income invested in this crazy portfolio.


Valero fell into the holding portfolio for me.
 
B

Behrang(ISP)

King of Posts
#9
Oct 16, 2002
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0
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#9
Bache Tehroon said:
This is my rule of thumb for money:

Your portfolio and the stocks you buy to play around are quite different. Everyone should really have 3 portfolios. One for retirement, one for holding money and generating immediate income, and one for playing around with (gambling).

The retirement portfolio should be a boring one for the most part, diversified heavily into moderate to low-risk stuff. Depending on your age you should decrease the risk as time passes. At least 10-15% of your income should continuously be saved in a retirement portfolio (like a 401K or Roth or RRSP or whatever tax-sheltered saving account your country of residence offers).

The holding portfolio is the one that you diversify into higher risk but dividend paying stuff. Even losing 2%/year on this portfolio still beats holding cash in your account. Maximum balance of your holding portfolio should not be more than 6 months of your income. If it's more, you should consider buying real estate or physical gold with some of it.

The gambling portfolio is fun and frustrating at the same time! It's really a gamble and often a losing venture! You should really have no more than a month of your income invested in this crazy portfolio.


Valero fell into the holding portfolio for me.
Click to expand...
Haji, I'd love to gamble. Pretend that your gambling portfolio has gone belly up and send that $$$ over to me and I'll invest it in the Behrang fund :)...
 
ChaharMahal

ChaharMahal

Elite Member
#11
Oct 18, 2002
16,563
261
#11
The Fundamentals of Refining is very tricky.

cons
--
the industry is fool of accidents that prove to be costly form liability point of view.

It is a very low margin business.

--
Pros

It is virtually impossible to build a new refinery in U.S because of local permitting issues.

It is guaranteed demand that fluctuates very little. this is basically a utility.
 
masoudA

masoudA

Legionnaire
#12
Oct 16, 2008
6,199
22
#12
Those of you who think you can win in the stock market are fooling yourselves........I find nothing funnier than those who try to make science and sense out of the market..... it is all about supply and demand......how much money can the world supply and how much the wall street seat holders demand!!
 
Bache Tehroon

Bache Tehroon

Elite Member
#13
Oct 16, 2002
39,533
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#13
masoudA said:
Those of you who think you can win in the stock market are fooling yourselves........I find nothing funnier than those who try to make science and sense out of the market..... it is all about supply and demand......how much money can the world supply and how much the wall street seat holders demand!!
Click to expand...
I don't think even the biggest investors have the slightest idea about 'beating' the market. That privilege belongs to a handful of 'mostly unaware' people who make market-changing decisions that luckily favors some people while unluckily shitting on others.

The idea is to distribute your money as close as possible to the market's current distribution. Of course no one has enough money for that, so you simply try. The whole thing is an insider's game, but it's perhaps the only way left to beat inflation (fiat-money losing its value). Even commodities are speculated upon so the whole Gold vs. Stocks argument has no merit anymore.
 
masoudA

masoudA

Legionnaire
#14
Oct 16, 2008
6,199
22
#14
Last I heard NYSE had over 1300 SEAT HOLDERS...........these are the guys who determine what happens to stocks while the market is closed!! They don't even hide it...
These seats are transferable from father to son..........
 
ChaharMahal

ChaharMahal

Elite Member
#15
Oct 18, 2002
16,563
261
#15
if you want to invest your retirement fund properly (assuming you are in your early 40s).

the most secure way to do is to buy in the market every 6 month so.

don't try to buy individual stocks. just buy the S&P 500 index fund equivalent in your country.

when you do it over six month intervals for ten years or so you take the emotions of out of it.

you do your dollar cost averaging and hopefully your money will grow along with the market.

But this is only good long term strategy to keep up with the market (not beat it).

the First thing one needs understand is what are you trying to do.

Are you trying to preserve your capital?

Are you trying to grow it at the market pace?

are you trying to beat the market?

A lot of people are rather emotional about investing. they get in the wrong time and they get out in the wrong time.
 
Zob Ahan

Zob Ahan

Elite Member
#16
Feb 4, 2005
17,481
2,233
#16
Great day to pickup Caterpillar CAT:
** CATERPILLAR INC, $104.97, -3.15 pct

Caterpillar reported higher-than-expected second-quarter earnings on Thursday but said sales fell as a continued slump in the global mining industry offset a rebound in the North American building sector.
 
ChaharMahal

ChaharMahal

Elite Member
#17
Oct 18, 2002
16,563
261
#17
I really am not a fan of CAT above $90.

I am very much fan of risky strategy. buying Put Options on XLE at 100 Strike for January 2016.

Oils have climbed too high as a result of Iraq, Ukraine, Lybia, Syria.

I think a lot of these things might settle down and there will be price pressure.
 
ChaharMahal

ChaharMahal

Elite Member
#19
Oct 18, 2002
16,563
261
#19
Zobi jan I picked up some BP.

Although none of oil majors have performed as well as Total for me in the past 4 years or so.
 
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