Long Position on CVI @ $40.00 on 6/15/2022 (Momentum)

CVR Energy, Inc. (CVI) engages in the petroleum refining and nitrogen fertilizer manufacturing activities in the United States. 

It operates in two segments, Petroleum and Nitrogen Fertilizer.

The Petroleum segment refines and markets gasoline, diesel fuel, and other refined products. It also owns and operates a coking medium-sour crude oil refinery in southeast Kansas; and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm co-operatives, and other refiners/marketers.

The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products; and a nitrogen fertilizer facility in East Dubuque, Illinois that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN). It primarily markets UAN products to agricultural customers; and ammonia products to agricultural and industrial customers.

On May 2nd, Cvr Energy (CVI) reported 1st Quarter March 2022 earnings of $0.02 per share on revenue of $2.4 billion. The consensus estimate was a loss of $0.10 per share on revenue of $1.8 billion. Revenue grew 62.2% on a year-over-year basis. Since then shares have formed a bullish "cup and handle" and are expected to move higher from this formation.

Entry Point: $40.00

Trading Range: $11.22 to $43.61

Stop Loss: $38.00

Target Price: $44.00

Position closed on 6/17/2022 at price of $37.75 with a -5.63% loss in 2 days.

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