Stock climbs that just don't make sense
 

As always I'm keeping a very close eye on oil company stocks, particularly the independent oil stocks. Like VLO, TSO, SUN, FTO, etc.
Their stock prices are through the roof recently, but margins are in the toilet and profits are non-existant. The price of oil keeps climbing, the price of finished fuels is tanking, refiners are losing up to 5 cents per gallon right now and it doesn't look like things will get betting until spring at best.

So why in the heck are the stocks going up?
All I can think of is that either people are investing dumb (thinking that when oil prices goes up it helps the independent refiners, which it doesn't) or they are simply jumping on the band wagon.

I'm out of this sector completely except for a pile of stock options and grants that haven't matured yet.

hey Sammy check out WTW. I sure didn't see this in my crystal ball.

http://forums.pelicanparts.com/uploa...1297973447.jpg

If you really think it's overvalued you can always play the short position...

Didn't see that coming. Did you have any of it?
They're preducting to beat analyst's estimates of profits for FY2011 by up to 40%, I don't think that one's topped out yet.

TSO hit a 52 week high today of $25.85, up another 5.7% on the day and up 12% on the week and up 100% in 6 months. Scary.
I'm thinking it's time to cash in some options, I just hate to take the tax hit.

Hey...I just signed up for Weight Watchers.....now Ya know the reason...

I took a 37% profit in 4 trading days on a stock that had already gone up 60% in the past month, and about 30% in the two days BEFORE I jumped in.

Took a risk riding the momentum, set up limit orders just right and walked away within 1% of the 52 week high, before it plummeted 25%.

Look at Seahawk and Hercules, lots of people made lots of money, and lots of people LOST lots of money.

Then look at GWAY (which no longer exists). Went from $0.01 per share to over $5.00 a share in 3 days. I made a couple hundred in 2 hours playing with that momentum too (I think i was 14% return).
The current charts for GWAY are after they did a 1-10 reverse split and renamed the company.

Playing with volatile stocks is fun!