Valero has been hurt over the last 12 months. Could things improve? Margins have been squeezed by the rising cost of production. (cost of crude, ect.) This is called the "crack spread" which is the difference between the cost of crude and what they get for gasoline they produce. Last spring they got $34 a barrel. The stock hit a all time high. This spring they are getting about $ 6.00 a barrel, but as the summer comes around the crack spread could go alot higher. The stock is down 32% for the year. Although this stock could go down further, im jumping in now.
$46.17 (05/08/08)
