Depends on how you define value trap. IMO vlo will deliver $5-6 per share eps annually, with a $1 per share annual dividend and volatile growth patterns. At $33-34 share, trading below tangible book value, especially when one considers the highly liquid inventory is accounted for at LIFO, which is $7.5 bil below market.. Seems like there is little downside, unless one assumes another great recession.
FWIW, based upon my model, I expect earnings to be in the $1.30-1.35 per share range when vlo reports in two weeks.
I bought 200 shares long on VLO at about $38.50 share. What I mean by value trap is that it looks cheap but it keeps going down. VLO has a low PE and other good metrics even when it was priced at $45 range but it seems to keep going down. I've thought about buying more but when I do, it seems to continue it's trend of going down. VLO appears to be an oasis in a dessert but in reality it may actually be a sand trap. Any thoughts?