screw the price of oil!!!!!!
what is a 10 to 12 $ VLO worth with 16 coming with PCO closing in the fall????
VLO was having some of the best spreads when oil was in the mid 40's
go scare someone else!
I won't argue that he sold out during tough times but recovering from $37M net worth in 1997 to $1B today is around 60% annualized for over seven years. Who else do you know that's done that?
Much better than you - obviously! He was forced into selling or he would have lost control. Check the history. He sold to his buddy Rainwater in a sweetheart deal to spite the group of shareholders that would have forced him out. 1997 wasn't exactly a high point in the market to be putting a company of this type up for sale. If you want to stick your head in the sand and believe press clippings that he just decided to sell at this time to pursue other interests, be my guest. It's your money, but probably not for long.
The additional cost to refine sour crude is no more than $3 bbl. VLO prints money when sour crude discounts are this high. The analysts can't seem to figure this out and that is why they continually miss earnings estimates on the low side. Management has given guidance pointing toward a $3/shr number for the quarter. Considering that would be $6 pre-split, the second quarter will be better than many of the recent annual earnings numbers.
That is why this stock is a buy in my opinion.
As of Friday the 8th the spread was $14 on the Maya, giving that Sweet was at $60 that will give it a price of $46ish. What you don't realize is that the cost to refine sour is much more than that of the sweet variety.