Ready to Jump on a Refiner IPO
I have been trying to find a way back into trading refiners, as the group had one of the great runs in 2012 and looks poised to do well in 2013 also. One of those opportunities is coming up today in the initial public offering (IPO) of CVR Refining, which will trade on the Nasdaq under the ticker symbol CVRR. It is expected to raise $520 million by offering 20 million units for $24-$26. I'm recommending purchasing the stock, depending on the IPO price.
Refining has been one of the big surprises for 2012, with some of the mid-continent players such as Tesoro (TSO) and Western Refining (WNR) making the strongest moves for the year of any stocks in the S&P 500. Much of the profitability and strength has come from the now well known spread differential between the two financial crude oil benchmarks – West Texas Intermediate (WTI) and Brent crude, defining the relative prices of the input cost of crude oil and the output price that can be charged for refined products like gasoline and distillate products....416 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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