Exxon hits Wall Street and makes headlines but refiners are the real story. Texas-based Exxon Mobil sauntered up to the New York Stock Exchange for an analyst day and made big headlines when the company announced plans to spend $21 billion to find more oil. But, as the world's biggest company hunts for more black gold and the price of crude keeps jumping the smart money is looking toward the oil middle men: the refiners. Are refiners your best energy trade?
Eric Bolling says he doesn’t love the integrated oil companies because they are tied directly to the price of crude. There’s too much uncertainty.
The play that makes sense to him is buying the refiners. He says these guys are on domestic soil and it makes sense to him because the fact that the refining complex is so messed up keeps their profit margins high. Eric says the best name in the space is Tesoro (TSO).
Dylan said while talking with Exxon CEO Rex Tillerson he learned that the price at which gas sparks public outcry is $2.40. That’s where the price is today. Eric said that's another reason to not get mixed up in the integrated oil's such as Exxon (XOM).
Guy Adami took down Eric and said he likes Exxon. The street doesn't love this stock and when they finally come around it will be at $82.
Tim Strazzini says Exxon is slightly overvalued. He’s a seller. He says the stock trades at too high a multiple.
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On MAR 7, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Strazzini Owns (HAL), (YHOO), Is Short (WCG) Bolling Owns (BP), (XOM), Gold, Silver, Soybeans, Is Short S&P Futures, Is Short Nasdaq Futures, Is Short Corn