Hurricane Irene Stocks: Valero, Western Refining, and DIG
The panic is setting in and Gov. Chris Christie declared a state of emergency today. Fellow Masters its time to think about building positions in the refiners such as Western Refining (NYSE:WNR) and Valero (NYSE:VLO). Better yet just buy the best of the the oil and gas sector using the coveted ProShares Ultra Oil & Gas ETF (NYSE:DIG).
This is a classic no brainer play as Hurricane Irene could push up the refiners stocks in a heartbeat should the impact hit the East Coast.
Mastery Sponsors - Become one Today
The stocks to play...
Western Refining Inc (WNR) shares have traded between $4.01 and $21.75 over the past 12 months. Today WNR is at $16.26 a share, trading with a P/E Ratio of 15.6 and EPS of 1.04.
Valero Energy Corp (VLO) shares have a 52-week range $15.49 and $31.12, today they are at $20.43. Valero shares are now trading with a P/E Ratio of 8.8 and EPS of 1.2.
Finally the DIG is your weapon of choice as it contains the best oil and gas companies on the planet with the largest holdings consisting of 22% Exxon (XOM) and 12% Chevron Corp. (NYSE:CVX). The ProShares Ultra Oil & Gas (DIG) shares have traded between $25.53 and $63.63 and today are at $40.30
Christie said he was still weighing whether to order a mandatory evacuation of the shore areas. For now, he said people on a barrier island and any other beach community from Sandy Hook to Cape May should begin preparing now to leave.
"We are not overreacting, we need to be ready for this," Christie said.
He said that based on the state's tracking, the eye of the hurricane, or the most violent part of the storm, could make landfall over Cape May or Atlantic County some time Saturday.
Hurricane watches were issued along the North Carolina coast this morning, and tropical storm watches extend further south along South Carolina and Georgia. At this time, it appears the greatest impacts from Irene would be felt in New Jersey overnight Saturday through about midday Sunday, according to NWS Mount Holly.
MASTERY Bottom line: Should destruction hit U.S. shores, the refiners are going to pop.
WNR, VLO and a little DIG could help your portfolio to trade on the possible hype and actual destruction.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Credit Markets Continue to Show Signs of Stress - Caution Warranted | Financial Sense
- 637 Rate Cuts And $12.3 Trillion In Global QE Later, World Shocked To Find "Quantitative Failure" | ZeroHedge
- This Is Wall Street At Its Most Fatalistic: "Markets Are Now Coupled In A "Destructive” Way" | ZeroHedge
- The Curious Case Of The "Strong" January Retail Sales: It Was All In The Seasonal Adjustment | ZeroHedge
- Jose Canseco Says "Everyone Should Be In Gold", Predicts $1,500 By Memorial Day | ZeroHedge
- Gold Soars, Stocks Sink Despite Biggest Oil Rally In 7 Years | ZeroHedge
- Sanders To Hillary: "I'm Proud To Say Henry Kissinger Is Not My Friend" | ZeroHedge
The most relevant financial news and articles from the Internets
- The man who discovered Remicade is throwing his weight behind a... | Business Insider
- Donald Trump was trolled at rally by man standing behind him with bizarre '... | Business Insider
- Hallucinogens Legally Sold as 'Bath Salts' a New Threat | BusinessWeek
- This photographer will help you immortalize all of your favorite belongings | Business Insider
- Why 'Deadpool' is the most unique superhero movie in years — and you need to see it | Business Insider
- Take a look at 75 years of Jeep (FCAU) | Business Insider
- America's Best Young Entrepreneurs 2011 | BusinessWeek