PBF energy is in the refining business and is a little-known company based out of Parsippany, NJ that has a new CEO in the last year and has faced plenty of challenges with operating its refineries.
Despite those challenges, you can see that PBF has "FREE CASH FLOW" of $331 million for the last 12 months. The market cap of PBF is $2.33 billion, and throw in debt of $738 million, for an enterprise value that is nearly $3.0 Billion. The free cash flow yield is 14.2%.
Technically, PBF has pulled back after a major run up from $20 to $31 and is settling down to the $23-22 level where the most volume traded in the shares. See the mountain of volume on the right hand side of the chart which shows 'historical volume' that traded in the summer through the fall. Quite often, where previous volume traded, there are buyers who wish to buy more at that price and the decline finds support. Time will tell, but this is how you use technical analysis to help you make a buy decision here.
I would risk a drop under $21 and look for an upside move to $29-32 over the next 3-6 months.
I can fine-tune the entry, but PBF is volatile and it is best to give it a fair-amount of room when entering this stock.
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The green triangles are "Key Earnings Levels" where PBF reported earnings. These levels are GREAT levels to use as support and resistance. The Yellow Triangle is a 'blast-off' rally after the Presidential election where PBF jumped up on huge volume and held a pullback after that jump. There was news swirling about new more favorable regulatory environment, which would help PBF. Gov't regulation of the gasoline market and 'energy credits' can lead to very different levels of profitability. Stay tuned.
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This PBF idea required a bit more patience and a wider stop, but as the price fell, the odds got better and better as the Free Cash Flow Yield rose dramatically and ultimately PBF turned into a double.
Tim September 4, 2018
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coolingla
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Agreed.
PBF looks good from both fundamental and technical perspectives. Made some money lately and just bought a small position back. Downside risk is limited at this price already.
IvanLabrie
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@coolingla, give the man a like ;) (only 1, mine...) :p
coolingla
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@IvanLabrie, just did but I am sure Tim already past the stage of being a like mania :)
IvanLabrie
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@coolingla, hehehe, just an observation...actually, I'd like to see the likes and the scoring method here change eventually, to better reflect the trades' profitability, than just sheer amount of people agreeing or liking it.
In fact, we might have more success if we get less likes, a bit of a contrarian signal.
coolingla
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@IvanLabrie, completely agree and that's the reason I seldom give likes, including to your charts, lol
Tim is my most respected technician here on TW, and you are way up there too :-)
IvanLabrie
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@coolingla, thanks, and good luck with your trades, cheers.
IvanLabrie
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Excellent Tim, I was looking to reenter gradually, I see you have a tighter stop than I envisioned, sounds good.
Cheers.
PBF looks good from both fundamental and technical perspectives. Made some money lately and just bought a small position back. Downside risk is limited at this price already.