Western Refining: It's Time To Buy
Reported profit of 12 cents a share (would have been 24 if not for a tax write-off) this morning. Received ~$60 million in a tax refund boosting liquidity position greatly. Will be selling off one of their refineries to pay off a large chunk of debt but in the meantime they've secured a new credit line. At 24 cents a share per quarter profits, the company has a forward P/E of 8... and assuming oil continues to drop, they will make a mint. I listened to the CC, and the only thing the CEO wanted to talk about was reducing debt and boosting the balance sheet. This company is well-run and management has a good handle on what is going on. Plus, the short interest is gigantic and will soon be covering.