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Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

Valero Energy by Kopin Tan

Summary: Last week Valero Energy (NYSE:VLO) reported a 30% rise in Q1 net and tripled its share buyback plan to $6 billion. Yet despite a 21% rally in share price since late February, Barron's The Trader thinks there's still more upside potential: Improving refining margins should remain robust 'for longer than most on Wall Street expect' as there are few signs of a drop in demand for gasoline despite high prices. Eitan Bernstein of Friedman Billings Ramsey notes that at 9.7x 2008e earnings, Valero is still the cheapest of the large refiners behind 10.8 for Sunoco Inc. (NYSE:SUN) and 12.1 for Tesoro Corp. (NYSE:TSO).

Related Links: Valero Energy Corp: The Hunt for QualityValero Energy Might Represent Buying OpportunityBetting On Refiners: The Crude/Gas Price Disparity and the 3-2-1 Crack Spread

Valero 29 04 2007

Source: Valero Energy Remains a Bargain Despite Recent Runup - Barron's