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The company owns and operates 18 refineries located in the United States, Canada, and Aruba that produce premium, environmentally clean refined products such as RBOB. It also produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals.
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TMFMmbop (98.78) Submitted: 10/06/06 10:19 AM : Start Price: $48.79 VLO Score: -26.93
I owned this stock during its massive run-up and sold around $70 to put a down payment on a house. I haven't kept up with Valero as feverently since then, but my valuation still pegs it as worth $70 to $80 per share. No one, and I mean no one, is building another refinery in this country for at least 10 years. And guess what -- we still need to keep refining oil. If CAPS has proved anything thus far, it's that ethanol really is a false hope.
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matrixcons (83.00) Submitted: 10/06/06 11:20 AM
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I agree that Valero will be back around $70 at some point, probably next summer. The question is how low can it go. I'm planning to start buying when the prices at my local gas station bottom out, or take a penny uptick. How low? High 30s or low 40s? Sometime around December?
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TMFMmbop (98.78) Submitted: 10/06/06 3:21 PM
Good luck there. I call outperform when I think the margin of safety is big enough, but with energy being so volatile lately, VLO could well go lower from here.--Tim
matrixcons (83.00) Submitted: 10/07/06 9:41 AM
Volitility is a good thing. I caught only some of the $22 rise in VLO last Spring. My only regret was that I didn't buy much more and hold it a few weeks longer. I can't remember a time since the 70s when gas prices didn't climb in the summer, taking the refineries share prices with it. Not quite like death and taxes, but pretty close to certain. The only hard part is how to buy when the share prices are somewhere close to the bottom of the cycle.
extremeinvesting (98.56) Submitted: 10/31/06 12:54 AM
Yes, I can attest to this exemplary extreme performance investing stock also. I just loaded up again back in Sept when it dipped into the $48 range and will repeat the systematic buy low and sell high investing methodology, when VLO climbs back up into more familiar and respectable territory, upper 60's, then will cash-in once again leaving fear and greed behind. In the long term, this extreme performance stock will far surpass the major market indices. Now is the time to work on financing your vacation home.
mdriver78 (< 20) Submitted: 11/03/06 5:23 PM
I work for a major Engineering & Construction Company and I know for a fact that Motiva (A partnership between Aramco and Shell I believe) has contracted with Jacoobs Engineering and Bechtel to build a new refinery in Port Arthur, Texas to be on line approximately 2011.
TMFMmbop (98.78) Submitted: 11/09/06 2:18 PM
Is Valero the best blue chip for 2007? You decide:http://www.fool.com/news/commentary/2006/commentary06110914.htm?ref=foolwatch
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