$16.27
0.30 (+1.88%)
Valero Energy Corp (VLO)
CAPS Rating:
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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Taking a gamble on VLO. I honestly do not understand the refineries all that well and would like to learn more about them this year. Sometimes I make CAPS picks to force myself to do that.
That said, I don't have to know much about them to green thumb this right now. Net tangible assets are worth about $30 per share and the stock is selling at a 30%+ discount to that. This is also a commoditized industry and my general rule of thumb on commodities: "buy when the companies' are losing money and everyone is terrified to own these stocks --- sell when profits are sky-high and everyone is euphoric."
I could be wrong but even given my lack of knowledge of this industry, I believe this has a very good chance of working in my favor over the long-term.
I agree. From what I see, this is a bargain. I picked up a few share in real life.
I bought VLO at 20.09 and still feel like it was a good buy. :-)
does anyone have information on whether or not the current capacity for refining sour crude is causing enough demand to reduce the advantage of this one-time competetive advantage? I am trying to figure out if this is one possible cause for recent poor earning reports.
Refiners are under priced, I wonder when the supply/demand mechanics correct.
I agree also, but i am scared to put any real money in them because of what valuemoney says. He is picking tso and wrn to outperform but he says "roll the dice" and to never invest real money in refiners. It wouldnt bother me much but his accuracy is 90% plus and i get my ideas from many of his picks...lol he also picked vlo to outperform awhile back but is getting killed on his pick.
"crack spreads" ,this is why no money of mine goes to the refiners sure i feel refiners are undervalued at these prices but u MsIRA preach buy only the best companies any dont mess with the lesser ones. I agree with that statement so why invest in a fair company at a great price when many great companies are trading at a fair price. I cant claim that line because it came out of one of Warren Buffets books. The latter of those two makes more money over the long run. And if I HAD to invest in one of these refiners it would be VLO only because it is the biggest refiner and use Benjamin Grahams method and have a %50 discount on the price u think it is worth so if Jakila TheHun figures it at $30 dollars a share buy it only when it gets to $15. There is my 2 cents on all of these posts