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Valero Energy Corporation Message Board

  • Does anyone know how much the CST stock is going to be worth? I got scared and sold all my VLO when it tanked. Have, however, bought some back at the low, but no where near what I use to have.

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    • Here is an estimate of how much CST would be worth form a post from Cwebjohn:

      The retail segment did 210 million in Net Income in 2012. Based on the 76 million registered shares this would equate to $2.76 EPS.

      Casey's had $116 million in Net Income in 2012. Casey's is running at over 16x PE. If CST makes anywhere from $2.5 to $2.75 in 2013 and the PE is at 15x EPS we would see a $37.5-$41.4 share price.

      This is good stuff. I have previously stated I thought the shares could trade at $36/share so I can close to Cwebjohn's analysis.


    • Let me tell you this: I bought shares of a REIT, called General Growth Properties (GGP, and never mind that I bought the shares for an average of 80 cents around a Chapter 11 reorganization and the shares now are selling for $20). GGP spun off non-shopping mall real estate into Howard Hughes Corporation (HHC), so shareholders received, on the same tax-free basis as CST, only slightly less than one share for every ten GGP shares owned. HHC shares opened trading at $31 in Nov 2010 and are going now for $86. CST shares could appreciate on a similar order of magnitude. Might even consider buying CST shares on a when-issued basis if you are afraid to own VLO shares.

55.57+0.69(+1.26%)Feb 11 4:02 PMEST