Some companies are buy and hold. Other companies are watch and buy, then watch and sell. These companies take a bit more investment effort but if played right can make a profit time and time again.
Western Refining Inc., a crude oil refining concern, works to refine crude oil for sale to company owned enterprises and industrial sources. The company operates primarily in the south-western United States.
Although the company operates as a conventional refiner, it does not operate its sales and marketing arms as such. It wholesales its products to industrial concerns such as mining companies in Utah while its retail operations are sold to over 150 kiosk and convenience stores throughout the southwest. If the company operated on a typical refinery model, its margins would be fairly slim. But with the ability to pick up margins from refining, wholesale and retail revenue is considerably higher.
As one might suspect, low oil prices have led to lower margins in the past. Regardless of how one spreads the burden this is a reality of oil refining. The company, however, has made additions to accept lower grade crude shipments and expects the upcoming driving season to help. The company may not be a hold but more so a buy and sell as seasonal conditions and oil prices move. Western Refining is on the lookout and should be added to any watch list.