Dylan Ratigan explains that the reason Exxon is called an integrated oil company is because it’s an integration of multiple business. One part of that business sells oil to consumers, another part of that business is refining - and in refining, profits are a function of the crack spread.
Guy Adami tells Nick the crack spread has been closing. He recommends selling XOM.
Jay from South Carolina
Jay writes, “Karen, what are your thoughts on MasterCard’s (MA) earnings? Would you be a buyer on the dip? Or wait to buy MasterCard when the Visa IPO comes out in the first part of 2008? Or should I do both?”
Karen Finerman tells Jay she likes MasterCard (MA). However she recommends taking a small position and then adding to it over time.
Lynette from Illinois
Lynette writes, “What are your thoughts about buying Potash (POT) at this level? As you may know, it was upgraded Monday in light of long-term transport issues faced by a Russian competitor. Have I missed the boat?
Pete Najarian tells Lynette it’s late for POT. Don’t chase it, he says.