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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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TMFSinchiruna (< 20) Submitted: 11/24/07 1:52 PM : Start Price: $64.87 VLO Score: -35.97
Though refiners have been squeezed a bit by declining margins recently, the price they charge for their product, gas, will soon go up in step with the recent bump in crude oil. Gas prices were held down to get Americans fully used to $3 gas before beginning a short march to $4. Margins will thus improve to prior levels, and VLO will shoot back towards $80 and beyond. Good short-term play here from $65-$78 (it's previous high), but also a good long-term play as even $4 gasoline will sound cheap to us in the not-too-distant future. I plan to keep some VLO through $100 and beyond.
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dpid (< 20) Submitted: 1/04/08 12:53 PM
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I thinking that oil will actually go down to somewhere in the $80s level in 2008. I think refiners will end up well if gas falls though, as they will probably get cheaper product and still be able to charge more as people are used to high prices.
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TMFSinchiruna (< 20) Submitted: 1/06/08 11:45 AM
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Luckily, I think VLO will do well under either scenario. VLO's margins will improve, whether as a recult of rising gas prices or falling crude... though I still see crude hovering over $100 for much of 2008.
PennyBuyer (41.03) Submitted: 5/08/08 4:48 AM
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I see you bought VLO at around the same price I did (on caps), and it hurts being down some points and the relative percentage decrease but I believe 65 for VLO was a good opportunity to buy and now at 47 I almost feel like i'm buying gold (GLD) for 84. Let me tell you King Midas was greedy for the yellow metal and not because of economic factors, if you know what i mean. But the reason i wrote this was your mention of increasing gas prices with i whole heartedly agree with and even if there is a pull-back which I'm sure there will be that just means buy, but the worry that I will bring up and wish to have your opionion on, is if gas prices goes through the roof, creating deflation, and an overall crash of the market would you recommend zero coupon bonds and in what percentage, if you do, for your portfolio. Thanks, David M. Barstow
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