NYSE:VLO

Valero Energy Corp (VLO)

419.33
+13.03 (3.21%)
as of Oct 5, 2026, 8:00:00 pm Market Open.
62 watching
0
DON'T BUY

(Market Call Minute.) You don’t want to be anywhere near refineries at this time.

SELL

(Market Call Minute.) Thinks you are getting a squeeze on the refiners in the US. They’re getting under a little pressure.

DON'T BUY

On anything to do with energy, the season tends to end in early October. In energy, you have had the majority of the move. This one has had an okay move recently. Doesn’t know if he would be interested in owning the stock after the next few weeks.

DON'T BUY

If you are based in the mid west US or most of Canada you are buying oil at West Texas prices. Refineries in mid US and most of Canada have been very profitable. VLO is a mixture of both east coast and mid west US. You've probably seen the best in prices here.

PAST TOP PICK
(A Top Pick April 20/11. Down 14.68%.) Crack spreads are over $30. A good name to hold. Still likes.
DON'T BUY
Would stay away from the refiners right now. Crack spreads have tightened right now.
TOP PICK
Cracking margin has really blown out. They are a refining company. Lot of refining capability. They have a valuable business model and they have diversity. They are trading at a discount to pier group.
COMMENT
Refining is an ugly business. Not an industry of secular growth but one of cyclical margin swings. Hard to make money at it and plants are hard to run. Sector has just had a bounce off a significant rally. Has a fair amount of debt. If dynamics for the sector continue positive for a little while, they will be more of a beneficiary than the un-levered players. (He just sold a refiner, Frontier Oil (FTO-N).)
BUY
His model price is $44.50, a 45% positive differential. These stocks are very cyclical and pricing has to be exactly right in order for the refiners to make money.
DON'T BUY
(Market Call Minute.) Refining sector has been one of the most horrible ones over the last couple of years. Still too much capacity and too much inventory and nobody is making any money.
SELL
(Market Call Minute) It refines and he is negative on refineries.
HOLD
(Market Call Minute.) Pre-eminent refining company. Refining is in a tough spot but oil prices will go up.
DON'T BUY
While oil price has been going up, demand has not. This one is not attractive enough over the long term to be in it.
COMMENT
Refiners have had a very challenging period. Going forward there are other opportunities to put your money, as he doesn't see a dramatic recovery in the sector.
HOLD
Crack spreads are not moving up. Can refine many grades of crude but they don't get paid for this. Can't see any upside.
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