When we last looked at New Zealand Refining Ltd [NZR.NZX] back in October 2010 its shares were trading at $3.66 and its prospects at that time were starting to look promising as the oil price was rising and the company had largely put the expense of its plant shut downs and low refining margins behind it.
In June 2010 I picked the stock at $3.10 for the same reasons as stated above.
Yesterday the shares finished trading at $4.66 for the day (see 3 month chart above), up over 27% over 3 months or 50% from June share price levels.
The shares have traded upwards in the preceding months because of increased refining margins and an increased capacity to refine raw product after the plant upgrade in 2009 - 2010.
Profit has also been tipped to rise because of the favorable trading conditions.
It is likely that NZR will reinstate a larger dividend for the coming profit result and one would expect the share price to head north as global oil prices continue to rise.
This stock was in the 2011 Share Investor Stock Picks at $3.95.
Long term you will do well.
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Related Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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c Share Investor 2010 & 2011
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