Tesoro Corp (NYSE:TSO)

TSO rates exceptionally high by all measures with the exception of being ranked only #3 (short term) by Zacks (though Zacks includes it in their 50 best long-term stocks).

Refiners in general have been on quite a run lately, benefitting from the massive spread between Brent and WTI. As a west coast refiner, Tesoro hasn't benefitted much from that trend. I am somewhat familiar with the sector from my current holding, PSX.

One of the best investors of our generation, Dan Loeb, recently initiated a position in TSO. Loeb believes that the company's shares could double. At less than three times EBITDA, Tesoro has hidden assets in pipelines, and management that's starting to make more shareholder friendly moves. It's acquisition on BP's Carson refinery looks super cheap.

Whether on its own,mor spurred by Loeb, if TSO's management continues plowing money into buy backs or dividends this undervalued stock should rise.

Deej

Fidelity big buy, best bargain 10 best P/S.

Tesoro is in the middle of difficult negotiations with multiple union units. Two years after a explosion in Anacortes, WA, safety is a major sticking point with the unions. Management seems to be killing morale among the workforce with very, very difficult negotiations, negative pr and a possible strike. See how it turns out.

Oil will always be in demand.

piotroski screen

value stock

Current P/E ratio (forward) is 6.1. At some point the stock price will reflect its value...

low PEG, strong price uptrend

Trendspotter

Piotroski score.

I wouldn't short this in real life, mostly because of the P/B ratio.

im a chartist
0.22x debt/assets
0.63x debt/equity

crack spreads are spiking, I feel this sector has room to run over the short term. Less downside at these prices.
http://www.bloomberg.com/apps/quote?ticker=CRK321M1%3AIND

Picking up another refiner on the cheap, they are practically giving these things away today! As I've stated many times the past 6 months, you really can't go wrong buying into the refining sector right now. Things are down and people absolutely hate refiners right now, and you really can't blame them. This whole sector has been loosing massive amounts of money the past 1-2 yrs, crack spreads have not been kind to them lately and the stock price certainly shows it. (For those not familiar with crack spreads, see this blog for a better understanding: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=219753&t=01002756778892789413).

However, the thing to remember with refiners, is that they may be cyclical in nature, but when they are up, they're up big! They may be loosing money at a high rate now, but this will not continue forever. Eventually they will return to the mega cash machines that they can be.

TSO is priced disgustingly cheap currently with a nice P/B of 0.51 (yes!) and a forward 2011 P/E of 6.95 (super yes!). I don't expect this to double overnight and suddenly resume their EPS of 2-5 (which is more customary), but now is a nice entry point to begin building a position and wait out the tough times. You won't be disappointed.

As with several of the other refiners, there is a significant amount of debt here and I wouldn't rank TSO as my top refiner by any means. But come on, how can you pass up this opportunity!

Whoever thinks oil will be replaced soon needs their head checked. Tesoro is profitable even in tough economic times. At a book value of around $20/share this is a steal because their book value isn't being eroded by losses.

TSO, in Consolidation. Expect this industries to Outperform the indexes when the economy turns.

TSO's assets are all very valuable refineries and C stores. Most are located in the west, and sepcially CA. Replacemnet value is roughly ten times its current stock price indicates. There is no chance of TSO running into financial problems. Unless people start riding horses to work, this is tremendous value. Buy Buy Buy.

oversold

The demand for petroleum refineries will soon return. Since very little
capacity is being added in the USA, gasoline and diesel costs may approach new highs.