Posted:
#1
AU (gold mining), VLO (Oil, Refinery, Gas Station), TIE (Titanium)
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Roland
3 Good Stocks To Buy Right Now! You'll be thanking me in a few months..
Views: 468
Posts: 7
Posted:
#3
I dont see the value in VLO given the crack spreads over the past few months.
When valuing VLO, you dont look at crude prices, you look at crude prices relative to the refined products, so NG and unleaded etc.
VLO purchases impure crude called SOUR crude (because of sulfates etc in the product) at a discount to sweet, then they take it and refine it, selling the end products..gas, NG, propane etc.
So when valuing VLO, crude is the last thing you want to look at. With the refined products not moving up like the raw sweet crude is, that means unless sour is strongly discounted to sweet, VLO is making LESS than one might think.
When valuing VLO, you dont look at crude prices, you look at crude prices relative to the refined products, so NG and unleaded etc.
VLO purchases impure crude called SOUR crude (because of sulfates etc in the product) at a discount to sweet, then they take it and refine it, selling the end products..gas, NG, propane etc.
So when valuing VLO, crude is the last thing you want to look at. With the refined products not moving up like the raw sweet crude is, that means unless sour is strongly discounted to sweet, VLO is making LESS than one might think.
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