Since our last prognosis on TSO, we have recently sold TSO, bought it again, sold it, then have recently bought it again. We originally bought TSO at a price of $17.37 per share. Then we subsequently sold it at $18.45 per share for a percentage increase of 8.5% or $125.72. The trade time of this was roughly 1 month.
After a drop over the next three days, we bought TSO back. Our recent trade allowed us to buy 5 additional "free" shares. We bought it at a share price of $17.42. After our purchase, there was a quick run-up. Due to recent market conditions, and the volatility of the market, we sold it four days later at a share price of $18.73 or a percentage increase of 7.5% or $117.09.
Yesterday (9/29/08) just after the announcement of the rejected bailout (the second one), with stocks plummeting and hammering TSO, we found a buying opportunity in TSO once again. This allowed us to get 100 shares for essentially the same amount of investment as the times before at a share price of $15.46. Currently the we sit at a 6.63% increase in stock price from the slight recovery after the big drop.
The reason we keep playing TSO, from our opinion, oil prices have stayed low allowing them to make profits from the increase in the crack spread. We feel their lowered stock price is a result of market reasons and not company reasons. Therefore we feel the company has been unfairly beaten down due to surrounding effects of the credit market. Our opinion is their Q3 profits will be significantly improved from Q2. We would like to continue to hold this company until earnings are released late October. If we do have another quick run-up of roughly 15%, we would more than likely consider selling and buying back at a discount. Although, we would have to consider the news pushing the stock price higher and the relative closeness to their earnings report (one which we feel will be favorable).
As always, questions comments and feedback is always welcome.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment