Unless demand rebounds, shutting idle refineries and writing down their value could cause another hit to balance sheets. Many refiners managed to raise capital earlier this year, "but if the low-margin environment persists, they may need to tap the capital markets again," says Caris' Ann Kohler, who has Underperform ratings on refiners including Tesoro, Sunoco, Valero, Frontier Oil (FTO), Holly (HOC) and Western Refining (WNR). Although Valero boasts a strong balance sheet, Sankey contends that it has "just 10 more quarters, or 2.5 years, of liquidity available" unless its markets improve.

From a recent Mad Money show:"No, you can have that one. The only refiner I like is Marathon Oil (MRO) for its dividend."

Chart and cash flow yield

Sell - Price 12.11 on June 10
by Soleil Group

WNR's debt troubles are add[ing] to difficult year...with the shares having declined about 80% from its July 2007 highs versus a 12% drop in the S&P 500....But with WRF trading at a significant premium to its peers on 2008 and 2009 EV/Ebitda, high regulatory and maintenance capital expenditures...and the likelihood that a debt covenant will be broken at the end of 2Q08, we believe additional downside in the share price remains. Market cap: $827.4 million.

The stock has had 17,485 shares purchased by insiders, and no insider sellers in the last 6 months.

Western Refining (WNR) was upgraded from Sell to Hold, Deutsche Bank said. $28 price target. Stock has lost its premium valuation, though the refining outlook remains difficult.

With oil going only up, I found a refinery that is a cash cow, and that has much up potential

Western Refining (WNR) was upgraded to Neutral rating from Sell at UBS. Price target and FY 2008 eps estimates hold at $42 and $2.96, respectively.

Due for break out

made me some money

young ceo

This stock may be cheap but appears bottomless.

keeps going down