Well folks, we’ve had some big things in the works that we have wanted to share for a while, so read on for your usual trade idea/Coachman’s Report and some special announcements from us!
“Innovation is the unrelenting drive to break the status quo and develop anew where few have dared to go.“
- Steven Jeffes
Special Announcements
First of all, we want to take a moment to thank all of you for your continued interest in The Coachman’s Report. It’s been a pleasure publishing for you and it really makes our day when you email us back asking more about different pieces or sharing your take with us, so from all of us at CR, thank you for your support!
#1. We will be attending Collision Conference from June 20-23! Come check us out at the Enercare center over those dates for some 1-on-1 time with us, the founders and some exclusive deals on our upcoming products and services. #2. We’re launching a paid research service! This premium Coachman’s Report will include everything within the free service alongside added daily components on the economy, commodities, cryptocurrency and more, as well as monthly interviews with the brightest minds in finance! #3. We’re launching a fund! Our fund will be a democratization of our daily newsletter where you will have the opportunity to buy in and vote on our allocations towards different trade ideas on a consistent basis. Keep in the loop for more details on the aforementioned as they become available and thank you once again for your continued support!
Long: Marathon Oil | Timeline: 5 days
As we all know, high gas prices are crippling the United States, as these prices don’t seem to be going anywhere the only question for investors is how to profit. And today’s recommendation is ideally going to be the best answer to that question. Marathon Oil is a full-service powerhouse with three of the largest refineries by capacity within the United States (source). They’re primed for a dramatic rise in profits due to the ongoing refinery shortages gripping the nation, and world. Why are refiners best poised to reap profits during these crunches? Well to answer that question we need to break down the concept of the 3:2:1 Crack Spread. The 3:2:1 Crack Spread is a reflection of the profits earned from refining crude oil into products such as gasoline and diesel, as generally, one can produce 2 barrels of gasoline from 1 barrel of distillate. The spread is calculated by subtracting the prices of 3 barrels of oil from the price of 2 barrels of gasoline and 1 barrel of distillate (source). This ratio has hovered around $20 over the past 5 years, however, in the past 4 months, this ratio has exploded upwards to the $60 mark, providing refiners with the highest operating profits seen in multiple decades. As such Marathon Oil is primed to benefit from this large increase in cash flows. The technicals also support this trade, as the company is trading far above all of its moving averages, while also having strong momentum on its side.
Chart of the Day - Central bank gold reserves are growing
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