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  • Independent Oil Refiners Face Hard Times in 2009 and Beyond [View article]
    Valero Set To Win In New Pricing Environment (VLO)
    Valero Energy Corp. (NYSE: VLO) looks set to surge after the refinery giant posted earnings. The company posted $1.86 EPS from continuing operations, which may have some questionable numbers because some other operations from the Krotz Springs refinery have not been presented as discontinued operations. But on a net basis, the company posted $2.18 EPS. First Call estimates were only $1.54 EPS.


    The company's gain in earnings was mainly due to higher margins for distillate products in diesel and jet fuels. Valero also said that a decrease in margins for gasoline was partially offset by the higher margins for distillate products.

    Valero may also be entering the sweet spot in energy land. If oil stays in a range of say $60 to $80 per barrel, or maybe even $60 to $100, it can sufficiently make its business model work. When energy goes in a straight line from $60 to $100 and $100 to $140, or when oil goes from $140 down to $80 in a straight line, it gets very hard for managers to plan. But a stable pricing environment will create stable margins for the refining sector.

    After a 70%+ sell-off and a forward P/E of roughly 4.0 to 5.0, you might even think that Wall Street would have accepted anything.

    Valero shares are up almost 12% at $16.85 pre-market. Its 52-week trading range is $14.59 to $73.68.

    Jon C. Ogg
    October 28, 2008
    Oct 28 09:13 am |Rating: 0 0 |Link to Comment
  • Energy, Consumer Staples: Value Investments Increasing [View article]
    how do you feel now with the earnings out ??????????? you should maybe go into hiding ..........for the next few years .... don't forget its already winter in canada and the Usa is cold ............
    Oct 28 08:16 am |Rating: 0 0 |Link to Comment
  • Independent Oil Refiners Face Hard Times in 2009 and Beyond [View article]
    you all have no idea what you talk off .. great company great earnings ... wow great great ......................... guys should hide now ......
    Oct 28 08:14 am |Rating: 0 0 |Link to Comment
  • Energy, Consumer Staples: Value Investments Increasing [View article]
    Valero Energy (VLO) NewsBite - VLO Falls on Lower Oil
    Posted on Friday, October 24, 2008 11:27 AM
    Valero Energy (NYSE: VLO) opened at $14.64. So far today, the stock has hit a low of $14.59 and a high of $16.13. VLO is now trading at $16.05, down $1.03 (-6.03%). Over the last 52 weeks the stock has ranged from a low of $15.76 to a high of $75.75. Shares of VLO are declining today, hurt by lower oil futures. While lower oil is usually a good sign for refiners, in this case, the low cost of oil reflects concerns over a global economic slowdown, which would be bad for VLO. Technical indicators for the stock are bullish and S&P gives VLO a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on VLO the stock seems like it could be a candidate for a November out-of-the-money bear-call credit spread above the 22.50 range. [ABR-Seven Summits Strategic Investments NewsBite]
    Click Symbol For More News On: (VLO) Stocks To Watch Today: GE, DOW, PFE, UNP, ABB, UPS, BHP, CTXS, CCE, BG, FFIV (Click Symbol For Latest News)
    Oct 24 13:16 pm |Rating: 0 0 |Link to Comment
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