Tesoro Corp (NYSE:TSO)

CAPS Rating: 4 out of 5

An independent petroleum refiners and marketers in the US with two operating segments: refining crude oil and selling refined products in bulk and wholesale markets and selling motor fuels and convenience products in the retail market.


Player Avatar edrain69 (87.13) Submitted: 3/5/2007 6:59:06 PM : Underperform Start Price: $42.13 TSO Score: -12.95

The refining industry usually maintains their average margins and when gasoline goes up, the margin stays the same but the company makes more money, as gasoline prices drop, the margins remain stable but earnings will decrease, discounting over th next 12 to 18 months there is no reason to have a long position in TSO, the picture will not improve, so prepare for a fall.

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Member Avatar leohaas (31.21) Submitted: 7/20/2007 2:03:39 PM
Recs: 0

The margins in the refining industry do NOT stay the same. Supply is always limited to the refining capacity, but demand for gas goes up and down significantly: it peaks in summer, and bottoms in winter. With stable supply and fluctuating demand, gas prices and refining margins go up and down. And with margins going up and down, so do the stock prices of the refiners.

The run up we saw this spring (the one you missed with your underperform call) is an example.

Member Avatar Mobilisa (51.40) Submitted: 9/19/2007 8:05:43 PM
Recs: 0

My secret Tesoro, I found them in 2002 and missed the ride when Tesoro was $4.00 a share and I have watch them go to $100.00, I can not watch everything all the time, a missed ride, though the company has steam.

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