TSO, Tesoro, Feb 2010

Tesoro, Spanish for treasure, is one of those oil companies you might want to look at. It is mostly in the business of refining, much like a chemical plant. I do not claim to understand any part of the business but apparently it used to be that if you took in heavy oil (At a lower price!) and were able to crack it, you would , in a manner of speaking, pocket the difference. Apparently those days are over as too many off-shore competitors can do the same. This has put a crimp on their earnings lately. But, they are down and refining in Texas is not about to end, so perhaps there is upside. Here is the picture.


From 90 to 5 is a pretty good bear market by any measure, but this one has crawled along the bottom suggesting that it may find its composure. Wait for a 60% retracement of the first up leg from say 5 to 18, which is at about 10.50. Buy with a stop at say 8 and wait for $20.