The panic is setting in and Gov. Chris Christie declared a state of emergency today. Fellow Masters its time to think about building positions in the refiners such as Western Refining (NYSE:WNR) and Valero (NYSE:VLO). Better yet just buy the best of the the oil and gas sector using the coveted ProShares Ultra Oil & Gas ETF (NYSE:DIG).
This is a classic no brainer play as Hurricane Irene could push up the refiners stocks in a heartbeat should the impact hit the East Coast.
The stocks to play...Western Refining Inc (WNR) shares have traded between $4.01 and $21.75 over the past 12 months. Today WNR is at $16.26 a share, trading with a P/E Ratio of 15.6 and EPS of 1.04.
Valero Energy Corp (VLO) shares have a 52-week range $15.49 and $31.12, today they are at $20.43. Valero shares are now trading with a P/E Ratio of 8.8 and EPS of 1.2.
Finally the DIG is your weapon of choice as it contains the best oil and gas companies on the planet with the largest holdings consisting of 22% Exxon (XOM) and 12% Chevron Corp. (NYSE:CVX). The ProShares Ultra Oil & Gas (DIG) shares have traded between $25.53 and $63.63 and today are at $40.30
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