Wednesday, July 30, 2014

Two Oil and Gas Refining Stocks Poised To Explode on Earnings

Tesoro (TSO) is reporting earnings tonight, Wednesday, July 30th, after market hours. The company beat earnings by 65% the last quarter and has a dividend yield of 1.7%. Earnings are expected to grow 37% over the next three years, but sales only a paltry 3%. If the company can keep surprising on earnings, based on current valuations, the stock could advance another 50 - 100% over the next 12 - 18 months. The stock is forming a first stage flat base on top of much longer cup and handle base. Positions can be initiated as the stock attempts to breakout above the $61 - 63 range. Protective stops should be placed around $57.




Western Refining (WNR) is expected to report earnings on Tuesday, August 5th, before the market opens. The company has beaten earnings over the last two quarters by 7 and 10% and has a dividend yield of 2.4%. The stock is forming a cup and handle base on top of a cup and handle base. The base contains several weeks of tight closes, a sign of major support. Positions can be initiated as the stocks begins to approach the 42.77 handle high. Protective stops should be placed around $41 or the low of the handle. The stock has a technical price target range of $55 - 65. This is a late stage base and will be more prone to failure.




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