Western Refining, Inc. (WNR)

[pete807]

The upgrade due to recent purchase of the GP for NTI has this one on my short watch list. Since it was the most shorted stock in the energy sector I am waiting to see how that changes now. Once the dust settles and the blush is off the rose it may be a good buy. They will have discretion over a growing amount of cash but hat is not new to them in the refining busiess. Their recent logistics MLP, WNRL plus now their new NTI MLP affirm their confidence in the new refining MLP business model. Variable distribution is certainly a more volatile model. Not for the faint of heart, imo. Lately the refiners are coming back with a better 3:2:2:1 crack spread. Time will tell how the broader market feels about WNR. I would like to see the short percentage of float get below 10%.