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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (51929)	7/25/2013 2:53:22 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 78740

Bought VLO Today - Valero Energy Corporation @ 35.49 Forward PE ratio 5.6, Current Div Yield 2.31% Morningstar Fair Value $47.00 Valero's system of 14 refineries is more complex than competitors', which allows the firm to process lower-quality feedstock into a high-value product. By using cost-advantaged crude or residuals for about two thirds of its feedstock, Valero can take advantage of the discount these crudes typically trade at compared with light crude. As a result, Valero has historically delivered higher margins than its competitors. Light crude prices historically have commanded a premium to heavy grades because they can yield higher amounts of product with less processing. Refiners that can use the cheapest source of crude will realize higher margins than refiners who must use the higher-cost feedstock.