04/30/13 04:50 pm ET ... S&P MAINTAINS STRONG BUY
RECOMMENDATION ON SHARES OF VALERO ENERGY (VLO
40.32*****): We keep our target price of $52, on a multiple of 4.9X
enterprise value to our '13 EBITDA forecast, in line with the peer
average. Based on Q1 results, we lift our '13 EPS estimate to $5.47
from $5.42. Q1 EPS of $1.18, vs. a loss per share of $0.78, was
above our $1.13 estimate due to higher than expected volumes. VLO
stated that on May 1, it will spin off 80% of the outstanding shares of
its retail segment, CST Brands, Inc., to its stockholders. We view the
pending spin-off as consistent with VLO's plan to unlock shareholder
value and focus on its refining business. /T.Shafi
It seems that at the moment the company is very misunderstood so use that to your advantage.
VLO is very undervalued.
If this continues, it will attract attention from Buffet or Icahn or similar.
Listen to the conference call about the value of VLO versus having to go build just 1 new refinery and you will understand what I am saying.
This spin off thing should have been locked down long before now. I guess the price could have just as well gone up but I see the wi trading and I feel kinda screwed. It sounded more cut and dried than it has been.