Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (41513)	7/17/2006 2:06:46 PM
From: hubris33	Respond to of 108906

Jim, I think the refiners are fairly valued in the 70s and don't see where there is room for double digit increases in profits for years to come. Thus they trade with POO or they hit a trading range. Don't get too simplistic with the notion of constrained capacity. One needs to remember that there is always the annual 'refinery creep' a steady annual increase in the total USA capacity of 3+% as engineers work out bottlenecks and take technology improvements within the shutdown cycles. Additionally with the large profits out there many refiners are in the process of upgrading their plants. A lot of upgrades came on line with the LSD requirements and those small refiners that took deferrals will be coming on line in the next year or so. Additionally there is some price at which Americans quit b*7<hing about the price of gasoline and actually do something about it. I don't see demand as continuing its growth unabated in the face of rising prices. JMHO H3