Gear Maker Graham Corp (GHM)

From Investor's Business Daily posted tonight under The New America, "Graham supplies gear that goes into building or upgrading oil refineries. There's a lot of that going on these days as refiners scramble to process more sour crude to meet heavy demand." Now, as we all now, Sweet and Light crude is most profitable and easiest to refine, and heavy, sour crude is a lower grade of oil, but it's fueling a "sweet business" for Graham Corp, based in Batavia, NY.

IBD's MARILYN ALVA reports, the price of West Texas sweet crude has soared, U.S. oil refiners have been adding capacity for sour crude."
She goes on to say that GHM "enjoys about 75% market share in the U.S. for its oil-refining products. Earlier this year, three U.S. refineries ordered $9 million in ejector systems from Graham to help process sour crude..."

Fiscal fourth quarter and full-year revenue and earnings have not yet been released. But in a statement in early April, Chief Executive James Lines said to expect $85 million to $86 million in full-year revenue. That compares with $66 million in the earlier year. Industry forecasts say chemical processing upgrades will stay strong through 2011 to 2013, Garner says. And 7.4 million barrels a day of additional refining capacity will come on line by 2012, he said, citing a forecast from OPEC.

"So there's visibility in the cycle for another three to five years before we see weakness," he said. To read more or to follow up on this company, continue onto Investor's Business Daily website, under "New America"...this is most definitely an equity I am going to put on my watch list.

MPM