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Predaking (99.01)

Why Do You Like WNR??

Recs

5

November 02, 2009 – Comments (5) | RELATED TICKERS: WNR

I've seen a lot of REC's for WNR and many bloggers claim that it is a personal investment, so I decided to take a quick look. I haven't delved deep into this stock but after a cursory analysis I'm wondering why this is a favortite of so many? If you own, or believe, WNR is a good investment, could you please explain why so I can see what I'm missing.

Just a few things I saw:

Discontinued regular dividend (which may be a good thing if money is used to pay down debt, bad thing if you typically look for dividend paying stocks)

Short Interest of 55.95% (according to TD Ameritrade as of 10/15; do other people know something?)

Negative EPS that last couple of quarters.

Long-term Debt (which may not be bad depending on how it's structured and the interest rate - I haven't taken a closer look yet)

Near a 52-week low as the rest of the market has rallied (buying opportunity or complete dud?)

Most reports I've seen say hold or sell (I don't lend much credence to analyst reports, but others do, so I look at them)

I like that it's a small cap, in the oil sector and has less than 50% institutional ownership - but that's not enough for me to put real money in this one.

Any insights would be appreciated.

 

5 Comments – Post Your Own

#1) On November 02, 2009 at 12:22 PM, leohaas (99.26) wrote:

I agree with you (but maybe I should warn you that my record on making refining calls is not stellar...). I would not put money into WNR at this moment.

However, a short interest of 55.95% is a short squeeze waiting to happen!

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#2) On November 02, 2009 at 2:00 PM, FleaBagger (99.17) wrote:

I'm not a great refining investor or timer, but refining margins looked low, and WNR looked like the cheapest of the refiners. When refiners go down, WNR goes down more, and some of the times refiners have gone up, WNR has gone way up. So I sold some expensive puts when WNR looked really cheap.

I probably should close them, because I haven't really been following WNR or refiners or oil lately.

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#3) On November 05, 2009 at 12:39 AM, jamminjamy (< 20) wrote:

the positives i see about this are the 41% insider ownership and also insider buying  @ $9 this past June... I would like to hear what others think, thx.

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#4) On November 05, 2009 at 12:53 AM, Momentum21 (70.74) wrote:

I sold it recently and got out with a small gain on a short-term hold...I just feel more comfortable with other sectors at this point given how much this one has underperformed everything else since August...but who really knows, eh?

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#5) On November 06, 2009 at 9:48 AM, GenericInvestor (50.19) wrote:

The under-performance is why I am interested in it.

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