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CST Brands (CST -0.4%) - the spinoff of Valero's (VLO) convenience store business (for those in...

CST Brands (CST -0.4%) - the spinoff of Valero's (VLO) convenience store business (for those in the Mid-Atlantic, think Wawa's superstores) - is again lower on its 2nd day of trading. Not a fan of the business model, Wilson Wang nevertheless says the low valuation has him interested. He's waiting first to see if institutional holders - Valero owners who have no interest in owning a retail operation - dump their stakes and create an even more enticing valuation (the Joel Greenblatt scenario).
Comments (9)
  • Sejd213
    , contributor
    Comments (188) | Send Message
     
    I must be missing something! CST has been holding up amazingly well. I expected it to rinse towards 28. Instead it was as high as 31.22 today. I`m seeking an entrance to CST within the next 10 days. I don`t believe many VLO holders are dumping as some of you Guru`s had been hoping.
    3 May 2013, 01:18 PM Reply Like
  • timestacker
    , contributor
    Comments (88) | Send Message
     
    So far a great day trading stock.

     

    Low of 29.85 so far on this Friday trading day.
    3 May 2013, 01:21 PM Reply Like
  • chenmj
    , contributor
    Comments (576) | Send Message
     
    My vlo spin off cst has lost more than 14% in its two days of existence. I am ready to dump it any minute.
    3 May 2013, 02:33 PM Reply Like
  • Wilson Wang
    , contributor
    Comments (809) | Send Message
     
    I am just waiting for those institutions to throw it away'
    3 May 2013, 02:49 PM Reply Like
  • jonbellemore
    , contributor
    Comment (1) | Send Message
     
    Only question is why did $VLO send $CST to us at $36!?
    3 May 2013, 03:09 PM Reply Like
  • Wilson Wang
    , contributor
    Comments (809) | Send Message
     
    What do you mean? VLO dropped down to 36 ish, but CST is at 29.5.
    3 May 2013, 03:33 PM Reply Like
  • miguel1
    , contributor
    Comments (10) | Send Message
     
    Sold Today at 29.77
    4 May 2013, 01:56 AM Reply Like
  • User 353732
    , contributor
    Comments (4758) | Send Message
     
    The filly integrated value chain is no longer a business model for any except the global majors.
    Today excellence in the oil and gas business for almost all companies requires a deep and sustained focus on one or two cognate segments of the industry.
    Gasoline/diesel retail is now becoming embedded in convenience retailing and is less and less a standalone business.
    Over the next 10 years even the largest branded majors may exit gasoline/diesel retailing in the US, especially as volumes stagnate or decline.
    4 May 2013, 09:10 AM Reply Like
  • timestacker
    , contributor
    Comments (88) | Send Message
     
    Of course another way of looking at VLO: The glut of oil coming down the pipe will cut the margins of refiners, thus the price of the stock may drop or at least linger. Retail business spinoff might do better, ie., CST.
    4 May 2013, 11:32 AM Reply Like
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