For more than a trade? So we had the CITI upgrade, the Oppenheimer downgrade, the Latin America deal to supply products to Costa Rica, the CVX warning because of refined products, VLO's own warning on slide show. So is the 33 buy, 34 the hold and 35/36 still the sell & the only real deal for VLO or can this be bought for something more? Oppenheimer said the refiners would be in a range for next two quarters due to margins. Is VLO the exception?
You need to be careful here. Any spike in oil prices will crush the refiners because they can only make so much fuel on a daily basis and they could be caught on the wrong side of the trade. Thats why margins have fallen in the past 6 months. There was a spike in global prices If Brent goes much higher watch as VLO goes lower
Go long now. EPA has proposed 2014 Ethanol blends slightly lower than 2013. RINs are slaughtered. VLO said they were spending up to $800 million a year on RINS. That's $1.60 a share pre tax. If the RIN argument goes away then buyers will return. VLO is undervalued, the rest of the market is overvalued. The Brent-WTI spread is over $9. Plus EXPORT Baby!! Good times are returning. Shorts will have to cover. This Board will hopefully rid itself of the short shills.
Agree big time.... I have been quietly accumulating pbf, hfc, vlo , nsh for the past month whenever they get bashed .... Almost time to start the xom reload . Still am waiting until the CC before considering TSO. Not selling anything yet... Although yesterday was tempting .