There are two angles to the issue. Others, as evidenced by articles published across the pond, think the scandal could change the way European regulators and consumers think about diesel. The second angle is suggestion the gasoline-oriented refiners could benefit if the diesel market is diminished. Suppose we will have to wait to see how it plays out.
Knowing the US market is small, the question was more focused on the European market, both in terms of Pembroke and exports.
That idea may have some merit, considering last week the US produced 9.1M bpd and imported 7.2M bpd (no indication how much was from Americas), according to the EIA, but raises five questions.
1. Would product prices be based on sourced crudes?
2. Could refiners maintain margins exclusively using these crudes?
3. Would refiners still be allowed to export products?
4. Would the US be willing to watch its world influence diminish?
5. How do we justify trade restrictions (import or export) on crude and not on any other resources or goods (e.g., coal, iron ore, rubber, corn, wheat, meat, pharmaceuticals, textiles, steel, aluminum, electronics, machinery, aircraft, automobiles, firearms)?
I want to see if there's anything to the talk of VW putting a lid on the diesel market. Always thought of that sector as more commercial than consumer-driven.
Not sure I would be bragging about how much money I made concentrating on VLO when the gist of the thread is how much better we would have fared concentrating on TSO.
13F's published. We finally can see who bailed on XCO. Among the sellers, State Street, sold 12M shares held for pension funds, etc. and Ares Capital management dropped 5.7M shares to cash out. No changes for Ross, Marks or Watsa.
Fresenius may have bought inventory late in Q2 to support a Q3 launch, and sales are booked upon delivery to the distributor.
Would expect the power plant regulations to put all but the dominant metallurgical coal producers out of business in the next few years. Celanese has a process to convert coal and natural gas to ethanol, so maybe that saves a shadow of the coal industry and puts the water-intensive corn and sugar cane ethanol producers out of business instead. As Bob Dylan sang, the times they are a-changin'.
Still buying. Darned if the market doesn't keep seeking my low bids. Institutions still may be exiting what now definitely is a penny stock (which technically it has been since breaking below $5).
I solely am presuming when a company has $25M cash, $1.5B debt, $20M negative quarterly cash flow and asks shareholders to approve a 100% increase in authorized shares, that it intends to issue additional shares. However, as the proxy mentions, shares could be issued in exchange for debt rather than made available in a rights offering or follow-on offering.
Average in if you do. May go lower on actual dilution announcement, but I am accumulating with expectation of selling within a year or two at three to four times today's price. Also positions for more rights to trade if they go the rights offering route again.
Did ah's spread account for VLO spinning off retail operations at the same time TSO was significantly expanding retail operations?