Valero Energy Corp (VLO)

Raldogg (60.97) Submitted: 3/14/08 12:46 AM : Start Price: $50.86 VLO Score: 29.80

With oil hovering the $110 mark, the crack spread is absolutely torturing the refiners. Pure play refiners like Valero and Tesoro will be hurt the most. I see Valero with more potential downside in the refining group becuase its the biggest refiner in the US. Although the driving season is quickly approaching I think the stock will go nowhere but down for the next few weeks. Another factor that hurts the outlook for Valero is the fact that US Gasoline demand seems to be decreasing. Americans are finally learning not to drive so much and buy ridiculous gas guzzling SUV's. The worsening credit market will indirectly hurt Valero as people will "feel" as if they shouldn't be taking weekend vacations that involve long drives and thus more gasoline fill-ups.

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