Dave, WV

The Importance of Stock Picking, Illustrated in Oil

I think Valero has recently been beaten down because they are a refiner, and the price of refined products has not risen with crude in recent months (it has risen, but more slowly). Last year this time, oil was $70, and wholesale gasoline was in the mid $2-s, and VLO traded in the 60s. I don't believe the refiner's tight margins will hold thru the summer. I expect VLO to climb significantly in the coming months.