When I suggested In December 2006 that Valero Energy (NYSE: VLO) would be a smashing investment in 2007, I looked great as it rose from around $50 to almost $80 per share. When I stuck with it, recommending it for 2008, I got sandbagged big time as it sank from a 52-week high of $73.68 to a recent low of $14.59.
Valero was trapped by rapidly rising crude prices and shrinking margins on the refined product. However, in the last quarter it was able to show a year-over-year incr...
I bought VLO on weakness this morning. The stock has been showing strong accumulation during the bottom consolidation area, along with positive divergences in indicators. I also took partial profits in my energy plays (USO and DIG).
More details later. Here is the VLO chart from last night's trade report:
It would seem that I made a lot of people mad in previous articles, when I claimed that Apple (AAPL), Google (GOOG) and Qualcomm (QCOM) didn't deserve their current evaluations. Well, I decided to take a different approach this time, and list a few stocks that I thought were trading at a lower evaluation than they were currently worth.
In the case of HD, this one might still require a few more months to start to rebound, but I am recommending getting into it now, as it will rebound so quickly when it does.
crack spreads will improve with crude oil price dropping this takes a few weeks to take hold as VLO consumes expensive inventory and replaces it with cheaper crude oil. VLO also uses heavy crude which is 20 bucks cheaper than the lightr crude price listed on CNBc....all of a sudden you will see it take off here by mid august
We advised caution in the oil markets on July 2nd, 2008. We are seeing the correction now. For targets I have $80-$100 as the low. The correction should continue through the end of this year.
When we originally wrote this article, my partner Sergey got a lot of negative commentary on some boards, which made us pretty confident about our analysis. The majority of the public is always wrong near the peaks and valleys. The public sentiment is probably one of the best trading indicators around.
BUY: Valero (nyse: VLO) Gasoline is hitting an all-time high on a wholesale basis, and it looks like higher prices are down the road. You need to gird for $4.00 gasoline this summer—perhaps even higher. Even with historic highs in the price of crude and gasoline, the ratio between the value of a barrel of crude oil and the value of the gasoline you can make from it is currently a loser for the gasoline producers. Normally, the ratio is about 1.25, meaning that the value of the volume of gasoline you refine from a barrel of oil provides a 25% gross margin ...
"Refiners enjoy a virtual monopoly. The high price of crude has put the squeeze on profit margins -- especially in the case of gasoline, even though it is selling for over $4.00 now. Gasoline always becomes a political issue during election season.
"Nevertheless, gasoline prices are generally rising. The stock market is also getting 'depre
Cocktail party conversation can take some strange turns at times. Over the Independence Day holiday weekend, I found myself in the unusual position of defending a fellow partygoer's purchase of Valero Energy Corp. (NYSE: VLO) shares to others.
Recently, many investors have begun to speculate that the bull run in crude oil prices has reached bubble-like proportions. Some folks are saying that "speculators" have driven the price of crude to unsustainable levels and a painful correction is just around the corner.
7/8 - "Recently, many investors have begun to speculate that the bull run in crude oil prices has reached bubble-like proportions. Some folks are saying that "speculators" have driven the price of crude to unsustainable levels and a painful correction is just around the corner...There's one sub-sector of the energy industry that would actually benefit big time from such an oil correction: Refiners."
"...profits at U.S. refinery operators plunged 98% in the first quarter because they were caught behind-the-curve on skyrocketing oil prices. Refiners have been raising prices to be sure. But t...
What can I say, one of my best stocks picks of 2007 has turned into one of my worst of 2008. Valero Energy(NYSE: VLO) the largest independent oil refiner in the United States has experienced shrinking profit margins as oil prices have continued to climb throughout the year.
It was reported in the Associated Press that a Wall Street analyst at Friedman, Billings, Ramsey & Co downgraded his expectations for the major oil refiners Wednesday. In regards to VLO, analyst Eita...
6/6 - "We are maintaining our Buy recommendation on Valero Energy Corporation (VLO) shares despite the ongoing refining-margin weakness due to high crude oil prices and weak-product demand."
"We believe that high feedstock and operating costs will continue to weigh on near-term margins. However, our long-term view of Valero remains favorable. We also like the company’s recent restructuring initiatives and its track record of returning significant capital to shareholders."
"We believe Valero shares have become extremely attractive. Our unchanged $65 price objective results from 2009 P/E an...
6/16 - "Although he had previously maintained a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO)...In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic exposure, refinery complexity and a new focus on profitability."
"...over the next six to nine months, the refiners look like a compelling play. Gasoline inventories are now back in line with seasonal norms; it’s likely gasoline prices will now rally further relative to crude oil. In fact, we’re alre...
Although he has been maintaining a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO).
In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic exposure, refinery complexity and a new focus on profitability."
"Our caution on the refining group was due to expectations that crack spreads would be weak through the spring, a period during which spreads tend to widen. Overall, this call
Although he had previously maintained a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO).
In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic exposure, refinery complexity and a new focus on profitability."
"Our caution on the refining group was due to expectations that crack spreads would be weak through the spring, a period during which spreads tend to widen. Overall, this call was correct: Refiners have underperformed the energy patch since mid-Mar
Refiners being squeezed
- VLO (and other refiners) have had their day. The "crack spread" is declining, or if not, holding constant. Reduced use of gasoline means reduced inco
VLO - nice bounce shortly
- Just like TSO, this one is gonna get a nice bounce shortly, I have a play I am stalking and will advise soon. We'll see, but oil should stay strong he
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VLO
About Valero Energy Corp
- Answers.com
When I suggested In December 2006 that 
What can I say, one of my best stocks picks of 2007 has turned into one of my worst of 2008. 
Although he had previously maintained a cautious stance on the refining group, energy sector expert 
