Valero Energy: Time to Take Some Profits?

Filed under: Stocks to Buy

Time was, independent refiners like Valero Energy Corporation (VLO), first discussed here on April 20, 2009 at a price of $20.08, were in a bind, operationally, due to high oil prices and low gasoline demand that squeezed crack spreads.



But that was a long time ago. Refinery margins, which were squeezed during 2008-2009, due to the loss of more than 8 million jobs from the U.S. economy -- many of those being vehicle owners -- continue to recover. Gasoline demand, in particular, has rebounded: the U.S. will likely see decreased gasoline usage on a per capita basis, as vehicle efficiency improves, but rising vehicle sales stemming from job growth will offset this.



In fact, if you're in at/near $20, now may be a good time to consider taking some profits with VLO.



However, other investors who can tolerate the risk can maintain their full position and go for an even bigger gain with VLO.

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Valero Energy: Time to Take Some Profits? originally appeared on BloggingStocks on Wed, 09 Feb 2011 16:30:00 EST. Please see our terms for use of feeds.

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