Oil and Refining Stock Market Sector

[BadThad]

I must say, just like the banking crisis, I believe oil and refining are going through their crisis. I made a lot of money by betting on financials when they were beaten down and then watching them rise. Other than some free shares, I'm out of financials now as I think they are over-bought. However, I've been working on building positions in oil and playing some in-out with refining.

I think oil and refining will be the next big thing for stock investors. My plan is to invest heavily in these and then sit back and wait it out. I don't much care how it looks now (and I didn't in financials), oil and refining will make a come back eventually. This is the point when you buy, while all the "investors" are running and stock prices are just killed.

A couple of prime example stocks: WNR and SUN. Today WNR hit it's 52-week low. At it's peek in mid-2007 WNR was $60+ stock. Perhaps we won't see those levels for 2-3 years, but we should see $20-30 within a year or so. Keep in mind a LOT of refiners have shutdown and moth-balled plants. This is going to seriously effect supply. Supply always lags demand, so when demand does increase, the prices are going to rocket until all these refineries and rigs are bought back into operation. This is going to equate to BIG profits for the oil and refining sector.....and that is going to equate to BIG stock price increases.

What do you think?