Alon USA Energy, Inc. (ALJ)

Lordrobot (27.59) Submitted: 8/05/08 6:58 AM : Start Price: $7.97 ALJ Score: 57.27

ALJ as other refiners has been way oversold. Recent vlo purchase fits in line with overall goal. This is an asphalt producer which is a traditional means by which gov. stimulate economies in a recession.

With hedge fund speculators getting crushed in the oil futures markets I would suspect oil to drop back down to about 80. this would improve margins.

I am not certain where the bottom is on this stock. But have to take a small position presently and will increase if it goes lower. My strategy is to accumulate shares on good companies that are beaten down. This is a good company and has been sold off by institutional elephants that had to liquidate for reasons unrelated to this company.

My horizon is always three years or more with the basic idea that a stock can triple or quad during that time frame. ALJ meets my criteria.

Report this Post Replies: 0 | Reply | Permalink